MAGIC (MAGnetic Intelligent Compound) is a solidified magnetorheological fluid containing both magnetic particles and nonmagnetic abrasive particles of micron size. In order to produce the effective MAGIC abrasive for polishing, it is important to know how abrasive particles distribute in MAGIC fluids under applied magnetic field. The influences of the volume fractions of particles, diameter ratio of abrasive particles to magnetic particles and shape of magnetic particles on the microstructure formation of particles in MAGIC are examined. In our study, numerical simulations of the particle method are performed to investigate micro-scale structure of particles in MAGIC. In this report, we show the effects of diameter ratio of abrasive particles to that of magnetic particles on the microstructure formation. As the magnetic particles form chain clusters, the abrasive particles are rearranged in the field direction. In order to arrange nonmagnetic particles in the magnetic field direction, the diameter of nonmagnetic abrasive particles should be slightly smaller than the diameter of magnetic particles.