Due to increasing demand of ultrafine finishing components, the finishing industries are shifting from micro- to nano-level yielding finishing processes. In some industrial applications, the ultrafine finishing is a prime requirement; such industrial applications include metal optics, medical implants, and defense optical system for targeting the object. To see the need of finishing of cylindrical and circular plane objects, a modified ball end magnetorheological finishing tool has been developed which is feasible to mount on a simple lathe machine with the help of a tool post and resembles the cutting tool in some extent. In this dissertation work, a magnetorheological finishing tool has been developed with a stationary cylindrical core with electromagnet cooling. A simple system of oil cooling with the help of an ice bucket has been designed for electromagnet cooling. The temperature sensors and monitors were installed for real-time monitoring of electromagnet temperature. The results of magnetic flux density at the tool tip and temperature generation in the electromagnet have been observed and concluded that the developed magnetorheological finishing tool is performing as intended.