ABSTRACT:Influence of magnetic paint formulations on a packing degree of magnetic particles was studied in the light of interactions of binder polymer and solvent. A method for producing magnetic paint is proposed to decrease the void fraction in magnetic layer. Dispersion in poor solvent gave the magnetic layer with rough surface and with strong interaction between magnetic particles and the binder polymer as well as the magnetic paint with much binder polymer adsorbed onto the magnetic particles. The effects of the dispersion in poor solvent persisted in the final magnetic paint, even though the solvent changed from a poor to good solvent in the second step. In this paper, the two-step dispersion process was investigated in which the first was the dispersion in poor solvent and the second was in good solvent. Binder polymer was added in each step. The decrease of void volume fraction in the magnetic layer was amplified by use of polyurethane with S03 Na group as a binder polymer in the two-step dispersion method. The decrease of void volume fraction improved the mechanical properties of the magnetic layer.