In order to analyze the e®ects of nano-diamond on the performance of magnetorheological°uids (MRFs), in this paper, the MRF-1 with a 2% mass fraction in nano-diamond and the MRF-2 without nano-diamond were prepared by the carbonyl iron powder as the dispersed phase and the synthetic mineral oil as the continuous phase. The viscosity and shear stress of MRFs under di®erent magnetic¯elds were measured by the Anton-Paar rheometer (MCR 302). The MRF settling stability was studied by a standing observation method. A four-ball wear machine was utilized for the wear test at 0.1 T of magnetic¯eld, whereas the magnetic¯eld was provided by an external coil. Also, the three-dimensional white light interferometer was utilized to observe the surface of the ball wear spot, in order to determine the MRF friction properties. The results demonstrated that the nano-diamond had a signi¯cant increase in the surface wear. The shear yield strength and settling stability of the MRF could be highly enhanced. The higher the strength of the magnetic¯eld was, the higher the di®erence in the shear yield strength was. These phenomena demonstrated that the physical properties of the nano-diamond could have a higher impact on MRF, which was of high signi¯cance to the preparation of MRFs with excellent performance.