Precision positioning system with magnetostrictive actuator(MA) has widely used in manufacturing devices to control the positioning accuracy to meet the high load and stroke requirements. It has many advantage in comparison with piezoelectric actuator; high force, high strain, high efficient etc. But, the performance of Terfenol-D, the commercially available magnetostrictive material, is highly dependent on the prestress, magnetic field intensity and temperature. This paper present an experimental investigation of the temperature effect on displacement characteristics of magnetostrictive actuator. In this paper, compressed cold air is proposed to improve of positioning accuracy of magnetostrictive actuator. The compressed cold air cooling system has good cooling effect Experimental results confirming the effectiveness of the proposed cooling system as high precision positioning system are also has presented in this paper.