Magnetorheological valve is one of the basic ways to apply and accommodate the MR fluid into most of hydraulic applications. A novel magnetic isolation radial MR valve which the magnetic flux was guided into the annular gap was proposed by changing the material properties of the typical single radial type MR valve. Compared with the magnetic field lines distributed only in the radial flow path of the non-magnetic radial MR valve, the magnetic isolation radial MR valve increased the effective annular region of the valve by changing magnetic field structure and without having to increase the valve dimension. The finite element method (FEM) was used to investigate the effects of magnetic field structure on pressure drop change in the non-magnetic and magnetic isolation radial MR valves under the same geometry conditions and the same flow path. The experimental test rig was set up to validate the simulation results, the simulation and experimental results showed that the pressure drop of the magnetic isolation radial MR valve can be increased by changing the material properties to twist and weave the magnetic flux into unexposed region to the magnetic field, which was superior to that of non-magnetic radial MR valve. In addition, due to the annular flow path was affected by the magnetic field, the magnetic isolation radial MR valve had greater rise response time.