Ferrofluids are a type of nanometer-scale functional material with fluidity and superparamagnetism. They are composed of ferromagnetic particles, surfactants, and base liquids. The main characteristics of ferrofluids include magnetization, the magnetoviscous effect, and levitation characteristics. There are many mature commercial ferrofluid damping applications based on these characteristics that are widely used in numerous fields. Furthermore, some ferrofluid damping studies such as those related to vibration energy harvesters and biomedical devices are still in the laboratory stage. This review paper summarizes typical ferrofluid dampers and energy harvesting systems from the 1960s to the present, including ferrofluid viscous dampers, ferrofluid inertia dampers, tuned magnetic fluid dampers (TMFDs), and vibration energy harvesters. In particular, it focuses on TMFDs and vibration energy harvesters because they have been the hottest research topics in the ferrofluid damping field in recent years. This review also proposes a novel magnetic fluid damper that achieves energy conversion and improves the efficiency of vibration attenuation. Finally, we discuss the potential challenges and development of ferrofluid damping in future research.