On-board appendages with mechanical moving parts for satellites produce undesirable micro-jitters during their on-orbit operation. These micro-jitters may seriously affect the image quality from high-resolution observation satellites. A new application form of a passive vibration isolation system was proposed and investigated using a pseudoelastic SMA mesh washer. This system guarantees vibration isolation performance in a launch environment while effectively isolating the micro-disturbances from the on-orbit operation of jitter source. The main feature of the isolator proposed in this study is the use of a ring-type mesh washer as the main axis to support the micro-jitter source. This feature contrasts with conventional applications of the mesh washers where vibration damping is effective only in the thickness direction of the mesh washer. In this study, the basic characteristics of the SMA mesh washer isolator in each axis were measured in static tests. The effectiveness of the design for the new application form of the SMA mesh washer proposed in this study was demonstrated through both launch environment vibration test at qualification level and micro-jitter measurement test which corresponds to on-orbit condition.