This study investigates the application of stainless steel fiberboards (SFBs) for effective vibration reduction in the head section of autonomous underwater vehicles (AUVs). SFBs offer a compelling combination of lightweight design, high static load capacity, and broad-band vibration reduction. To understand their effectiveness, we analyzed the mechanisms behind SFBs’ superior compressive strength and high-damping properties. Furthermore, a finite element model (FEM) of the AUV head section was created using COMSOL software. The model’s accuracy was validated by comparing simulation results with experimental data. This validated model was then employed to calculate the energy consumption of the bearing plate within the AUV’s head section, providing valuable insights for optimizing SFB design for specific vibration reduction applications. The results demonstrate that SFBs of various thicknesses exhibited higher energy consumption ratios compared to the aluminum plates. This finding reinforces the effectiveness of the SFB’s damping mechanism. Additionally, across the 0–6 kHz frequency range, SFBs significantly outperform the aluminum plates, achieving an average improvement of approximately 18 dB in vibration level difference (VLD). These results highlight the excellent vibration reduction performance of SFBs.