A novel high performance multi-walled carbon nano-polyvinylpyrrolidone/silicon-based shear thickening fluid (MWCNTs-PVP/SiO2-STF), abbreviated and subsequently referred to as MPS-STF, is developed in this paper. The rheological properties of the MPS-STF are investigated, and the viscosity model of MPS-STF is established. Furthermore, the MPS-STF based viscous fluid damper (MPS-STF-VFD) is designed according to the rheological characteristics of the novel fluid. The impact of loading frequencies, displacement amplitudes and the numbers of piston holes on the dynamic performance of the damper is studied through sophisticated multiple cases loading tests using MTS facility. The test results show that the loading frequency, displacement amplitudes and the number of piston holes have great influence on the rheological properties of MPS-STF. This directly affects the maximum damping force and heat dissipation capacity of MPS-STF-VFD. Finally, the mechanical model of the damper is established based on the principle of fluid mechanics. The simulation results agree well with the experimental data. The high damping performance of the MPS-STF-VFD can be achieved based on the characteristics of the modified fluid. Relevant results reported in this paper can provide an important solution for the development and application of damping technology in engineering structures.