Tool vibration is a frequent problem in the manufacturing industry where metal cutting operations take place. It affects the surface finish of the work piece, tool life and produce irritating noise. In order to restrain tool vibration in metal cutting, it is necessary to develop and analyze suitable methods which increases stability and improves the cutting performance. The present investigation aims at analyzing a tool holder along with Magneto Rheological Damper during hard turning operation. MR Damper has received great attention due to their ability to reversibly change from free flowing, linear, viscous liquid to a semi solid in milliseconds when exposed to a magnetic field. In this paper turning tool holder was analyzed using ANSYS software with and without damping effect. From the results it was observed that the use of MR Damper reduces tool vibration effectively and the computational result matched well with the experimental result.