The basic purpose of a damper is to reduce the vibration and to have a better ride comfort, road handling and safety to the rider. Recent developments show that an active vibration damper can effectively work much better than a passive damper. The effectiveness and reliability can be further enhanced by using hybrid dampers, which is a combination of active and passive dampers. But the need to have energy optimization in any field need not be stressed. Consequently, novel suspension concepts are required, not only to improve the vehicle’s dynamic performance, but also to see that the energy generated during vibration can be harvested by utilizing regeneration functions. Hence if a hybrid damper with energy harvesting capability be designed, it would serve both purposes. In the hybrid damper a combination of hydraulic damper to act as a passive damper and an electromagnetic (EM) damper to act as an active damper is considered. The hydraulic system has more reliability and is time tested and the EM system acts as a dynamic vibration system as well as energy harvester. In this study a hybrid EM damper is modeled, analyzed and validity is shown for frequency response functions and energy balance for its active use. It is also shown how the effectiveness of the suspension system can be enhanced by using a hybrid damper.