This paper describes the dynamic response of a small magnet encompassed with magnetic fluid in the external alternating magnetic fields. This study is concerned with the development of the micro magnetic fluid actuator composed of a permanent NdFeB magnet and kerosene-based magnetic fluid. The actuator is characterized by wireless operation with alternating magnetic field. The driving characteristics of small permanent magnet encompassed with magnetic fluid are examined by using a digital high speed video camera system. Experimental results show the possibility of the control of the permanent magnet motion by the external magnetic field.