Magnetorheological (MR) fluid finishing process is an application of MR technology in which controllability of the MR fluid is used advantageously to finish the workpiece surface. MR finishing fluid changes its stiffness in accordance with the applied magnetic field and hence it behaves like a flexible finishing tool. A relative motion between this tool and workpiece removes the material from the machining surface. The quality of the final finished surface depends on the constituents of the finishing fluid and the applied magnetic field strength as these parameters affect the rheological properties of the fluid. A study on the rheological properties of the fluid at high shear rates is carried out through Taguchi Design of Experiments to characterize its flow behaviour to be used in continuous flow finishing process. Constitutive modeling of the fluid sample is done using Bingham Plastic, Casson Fluid and Herschel Bulkley fluid models to characterize their rheological behavior. The Hershel–Bulkley model is found to be the best suited model for the finishing fluid. Analysis of Variance has revealed that volume percentage of iron particles is the most significant parameter with a contribution of 91.68% on the yield stress and viscosity on the finishing fluid. The highest yield stress of the fluid is observed between magnetic flux density ranges from 0.3 to 0.5 Tesla. An optimised combination is then synthesized to confirm the theoretical results. The effect of temperature is also studied on the optimised fluid which has shown that temperature shares an inverse relation with the yield stress of the finishing fluid