This paper presents an in-wheel vibration absorber for in-wheel-motor electric vehicles (IWM EVs), and a corresponding control strategy to improve vehicle ride comfort. The proposed in-wheel vibration absorber, designed for suppressing the motor vibrations, is composed of a spring, an annular rubber bushing, and a controllable damper. The parameters of the in-wheel spring and rubber bushing are determined by an improved particle swarm optimization (IPSO) algorithm, which is executed under the typical driving conditions and can absorb vibration passively. To deal with negative interaction effects between vehicle suspension and in-wheel absorber, a linear quadratic regulator (LQR) algorithm is developed to control suspension damper, and meanwhile a fuzzy proportional-integral-derivative (PID) method is developed to control in-wheel damper as well. Through four evaluation indexes, i.e., vehicle body vertical acceleration, suspension dynamic deflection, wheel dynamic load, and motor wallop, simulation results show that, compared to the conventional electric wheel, the proposed suspension LQR control effectively improves vehicle ride comfort, and the in-wheel absorber exhibits excellent performance in terms of wheel and motor vibration suppression.