This paper focuses on the design of a flux-biased rotary electromagnetic actuator with compact structure for fast steering mirror (FSM). The actuator has high force density and its torque output shows linear dependence on both excitation current and rotation angle. Benefiting from a new electromagnetic topology, no additional axial force is generated and an armature with small moment of inertia is achieved. To improve modeling accuracy, the actuator is modeled with flux leakage taken into account. In order to achieve an FSM with good performance, a design methodology is presented. The methodology aims to achieve a balance between torque output, torque density and required coil magnetomotive force. By using the design methodology, the actuator which will be used to drive our FSM is achieved. The finite element simulation results validate the design results, along with the concept design, magnetic analysis and torque output model.