This paper presents a novel design scheme of magnetorheological limited slip differential (MR LSD) and analyses its structure and principle. Compared with ordinary differential, the proposed magnetorheological limited slip differential overcomes the disadvantage of "Same torque but different speed " of common differential. The simulation analysis is used to analyse and optimise the damping model. The anti-slip control system of the vehicle model is established based on the fuzzy PID method, and the performance of magnetorheological limited slip differential is studied by using simulation softwares to simulate the vehicle's movement in typical road conditions. The simulation results show that the new magnetorheological limited slip differential proposed in this paper can redistribute the driving torque of the two driving wheels reasonably when the vehicle is skidding, so that the vehicle can overcome skidding and pass the low adhesion road surface.