[Abstract] In order to develop high-efficiency and small-sized hydrodynamic generators, a novel permanent magnet biased magnetic bearing which has a three-dimensional flux path was designed and fabricated. The magnetic bearing is small but has a strong bearing capacity. This paper clarifies the operation principle and dynamic characteristics of the fabricated magnetic bearing. The fabricated magnetic bearing showed good control performance in both the time and frequency domains. In addition, the rotor rotated stably up to 10,000 min.1. Moreover, rotational loss of the magnetic bearing was about one-fifth compared with a conventional mechanical ball bearing.