Magnetorheological fluids (MRFs) based on amorphous Fe-Si-B alloy magnetic particles were prepared. The influence of annealing treatment on stability and rheological property of MRFs was investigated. The saturation magnetization ( Ms) of amorphous Fe-Si-B particles after annealing at 550°C is 131.5 emu/g, which is higher than that of amorphous Fe-Si-B particles without annealing. Moreover, the stability of MRF with annealed amorphous Fe-Si-B particles is better than that of MRF without annealed amorphous Fe-Si-B particles. Stearic acid at 3 wt% was added to the MRF2 to enhance the fluid stability to greater than 90%. In addition, the rheological properties demonstrate that the prepared amorphous particle MRF shows relatively strong magnetic responsiveness, especially when the magnetic field strength reaches 365 kA/m. As the magnetic field intensified, the yield stress increased dramatically and followed the Herschel-Bulkley model.