A magneto rheological damper comprising: a housing extending along a center axis between a first opened end and a second opened end and defining a fluid chamber (28, 30) extending therebetween for containing a working fluid; an end cap located at said first opened end and coupled to said housing for closing said first opened end; a piston slidably disposed in said fluid chamber (28, 30) dividing said fluid chamber (28, 30) into a compression chamber and a rebound chamber with said compression chamber extending between said end cap and said piston and said rebound chamber extending between said piston and said second opened end; and a piston rod extending along said center axis into said rebound chamber between a proximate end and a distal end with said proximate end being located outside said housing and said distal end being coupled to said piston for movement between a compression stroke and a rebound stroke; a magnetic field generator located in said compression chamber and in an abutment relationship with said end cap for generating a magnetic field to change the viscosity of the working fluid; and an extension portion protruding radially outwardly from said housing and defining a compensation chamber and a channel with said channel being in fluid communication with said compression chamber and said compensation chamber for allowing the working fluid to flow from said compression chamber to said compensation chamber, characterized in that the magneto rheological damper further includes a coil spring located in said compression chamber and extending helically along said center axis between said piston and said end cap for providing a spring force during said compression stroke, wherein said end cap and said magnetic field generator defines a bore extending along said center axis to receive one end of said coil spring. a housing extending along a center axis between a first opened end and a second opened end and defining a fluid chamber (28, 30) extending therebetween for containing a working fluid; an end cap located at said first opened end and coupled to said housing for closing said first opened end; a piston slidably disposed in said fluid chamber (28, 30) dividing said fluid chamber (28, 30) into a compression chamber and a rebound chamber with said compression chamber extending between said end cap and said piston and said rebound chamber extending between said piston and said second opened end; and a piston rod extending along said center axis into said rebound chamber between a proximate end and a distal end with said proximate end being located outside said housing and said distal end being coupled to said piston for movement between a compression stroke and a rebound stroke; a magnetic field generator located in said compression chamber and in an abutment relationship with said end cap for generating a magnetic field to change the viscosity of the working fluid; and an extension portion protruding radially outwardly from said housing and defining a compensation chamber and a channel with said channel being in fluid communication with said compression chamber and said compensation chamber for allowing the working fluid to flow from said compression chamber to said compensation chamber, characterized in that the magneto rheological damper further includes a coil spring located in said compression chamber and extending helically along said center axis between said piston and said end cap for providing a spring force during said compression stroke, wherein said end cap and said magnetic field generator defines a bore extending along said center axis to receive one end of said coil spring.