A magneto rheological damper includes a housing extending between a first opened end and a second opened end and defining a fluid chamber extending therebetween. An end cap is located at the first opened end and coupled to the housing. A piston is disposed in the fluid chamber dividing the fluid chamber into a compression chamber and a rebound chamber. A piston rod extends along the center axis and attaches to the piston for movement with the piston between a compression and a rebound stroke. A magnetic field generator is located in the compression chamber and in an abutment relationship with the end cap. An extension portion protrudes radially outwardly from the housing and defining a compensation chamber and a channel. The channel is in fluid communication with the compression chamber and the compensation chamber for allowing the working fluid to flow from the compression chamber to the compensation chamber.