This article aims at modeling, analysis and design of a passive vibration isolation system using a magnetic damper with high efficiency and compactness. The experimental set-up was developed for a single degree-of-freedom vibration isolation system, where the damper consists of two elements: an outer stationary conducting tube made up of copper and a moving core made up of an array of three ring-shaped neodymium magnets of Nd–Fe–B alloy separated by four block cylinders made of mild steel that are fixed to a steel rod. The generation of eddy currents in the conductor and its resistance causes the mechanical vibration to dissipate heat energy. The vibration response of the system is obtained starting from a low-frequency range. The proposed magnetic damper achieves a maximum transmissibility value less than two for a natural frequency that is less than 10 Hz and the excitations at higher frequencies are successfully isolated. Numerical and experimental studies were carried out for a range of system parameters which show that isolators based on magnetic damping could be very effective for passive vibration isolation. Further, a theoretical model for an active isolation system is proposed in order to reduce the transmissibility at resonance. It is envisaged that the combined active–passive eddy current damper could be effectively used for vibration isolation.