This paper explores the versatility of Bouc-Wen hysteresis model in simulating the dynamic behaviour of magnetorheological elastomer (MRE) material. Bouc-Wen model have been used in many field of science including modelling the hysteresis phenomenon happen in magnetic material, elastomer, base isolation of structures and many more. Introduced by the Robert Bouc, this nonlinear hysteretic model has been modified by many researchers to suit different applications. Compression testing of MRE material under high strain amplitude produces nonlinear hysteresis curve based on stress-strain data. Bouc-Wen hysteretic model has been found to be able to simulate the hysteresis curve of MRE material using parameter identification method within MATLAB Simulink.