Ultrahigh speed grinding is a kind of high efficient metal cutting method. In order to improve ability of ultrahigh greed grinding wheel spindle to resist vibration and grinding quality, an ultrahigh speed grinding spindle system with a squeeze film damper (SFD) was designed based on the theory of squeeze film damping technology. Pressure distribution and squeeze film stiffness characteristic of SFD was study by the method of simulation. Based on theory study an ultrahigh speed spindle system with a SFD was designed and experiments were done. The study results show that application of SFD technology can effectively restrain vibration which is caused by the imbalance quality when the grinding wheel spindle turning at ultrahigh speed. And the speed of the grinding spindle is higher and the effect of attenuation of SFD to grinding spindle is better. Research works provides a new technology for the design of the ultrahigh speed grinding spindle system.