The paper introduces an electro-controlled steering damper’s working principle, which uses the magnetorheological fluid as the working medium, and derives the damper’s controlling and calculating method. The steering wheel’s return control strategies of it are investigated. In order to compare the control effect of the PD controller with the fuzzy controller, a simulation model of the vehicle’s steering system is established on MATLAB/SIMULINK. Then simulate the returning process of the front wheels at medium and high vehicle speed. The results show that the vehicle’s steering system equipped with the electro-controlled damper can restrain effectively the returning overshoot of front wheels when the steering wheel is returning automatically, and the effect of the fuzzy controller is excelled the PD controller, but it demands much more to the hardware for its larger calculation amount.