Sedimentation of particles in magnetorheological suspensions represents a crucial problem that concerns their efficient long-term application in practice. Prepared carbonyl iron (CI) microparticles coated with a low density substance, cholesteryl chloroformate, via a two-step reaction and immersed in silicone oil, exhibit three positive aspects: (1) the CI particle modification increased the compatibility between the particles and the silicone oil resulting in improved long-term stability (reduction in sedimentation); (2) the coating provided the particles with enhanced thermal stability in the oxygen atmosphere; and (3) rheological measurements proved a promising magnetorheological performance at different particle weight fractions. (C) 2013 Elsevier Inc. All rights reserved.