In this research effort, an innovative magneto-rheological variable stiffness and damping torsional vibration absorber (MR-VSDTVB) is proposed, and independent variable damping control and independent variable stiffness control are adopted to suppress the torsional vibration of the transmission system. MR-VSDTVB, based on semi-active control principle, exhibits a compact structure and integrates with magneto-rheological technology. First, the concept of MR-VSDTVB is discussed, and the output torque characteristic of MR-VSDTVB is analytically developed. Then, a prototype is fabricated and tested. A transmission system with MR-VSDTVB is proposed to verify the MR-VSDTVB's effectiveness. The structure and inherent characteristics of the transmission system are analyzed theoretically. Finally, an experimental setup of transmission system with MR-VSDTVB is built. Experimental results indicate that when torsional stiffness of MR-VSDTVB changes, a frequency shift phenomenon occurs; moreover, when torsional damping of MR-VSDTVB changes, the response amplitude of the experimental setup changes regularly; And finally, the on-off control test validates the effectiveness of semi-active control on the torsional vibration suppression of the transmission system. The above results verify the effectiveness of MR-VSDTVB in suppressing the torsional vibration of the transmission system. These findings are expected to expand the application of magneto-rheological technology and variable stiffness and variable damping technology in torsional vibration of transmission systems.