This paper describes the fabrication of the hydrophilic magnetic fluid with high viscosity and its application to oil seal apparatus used with the Nd-permanent magnet. The results are as follows. 1) The ultrafine magnetite particles under the size of $100;{AA}$ are first coated by the oleic acid ion and again adsorbed by the hydrophilic D. B. S. ion, and there by hydrophilic magnetic fluid with high viscosity could be made by dispersing them into the ethylene glycol. 2) In development of the oil seal apparatus using magnetic fluid and Nd-permanent magnet, the viscosity and magnetic susceptibility show high when the $Fe_{3}O_{4}$ content is over 50%(g/cc) in the fluid, so that such properties could improve highly the capability of oil seal. 3) The maximum of the resisting pressure of the oil seal using the ethylene glycol base magnetic fluid and the Nd-permanent magnet, is about $50;g/ extrm{cm}^2$, under the condition of this experiment. Therefore the oil seal may not be suitable for the ship engine and the driving part of the automobile, and thus it needs a lot further complementary reserch. However, it is quite favourable for such an oil seal apparatus as speed reducer under the condition of atmospheric pressure.