A polishing method using magnetorheological (MR) fluid has been developed as a new precision technique to obtain a fine surface. The process uses a MR fluid that consists of magnetic carbonyl iron (CI) particles, nonmagnetic polishing abrasives, water and stabilizers. But the CI particles in MR fluids cause a severe corrosion problem. When coated with Xanthan gum, the CI particles showed long-term stability in corrosive aqueous environment. The surface roughness obtained from the MR polishing process was evaluated. A series of experiments were performed on fused silica glass using prepared slurries and various process conditions, including different polishing times. Outstanding surface roughness of Ra=2.27nm was obtained on the fused silica glass. The present polishing method could be used to produce ultra-precision micro parts.