Electrorheological (ER) fluid or suspension containing lithium salt of poly(acrylic acid) were synthesized directly by inverse emulsion polymerization. Effects of the amounts of crosslinking agent and the stabilizer and neutralization degree used in the polymerization, as well as water content of the polymer particles on the ER activity were investigated. The ER suspension exhibited maximum yield stress at optimum amounts of stabilizer and crosslinking agent used in the inverse emulsion polymerization, as well as at optimum water content of the polymer particles. Glycerol was tried to be used as an activator instead of water and was shown to have a favorable effect on the thermal stability of the ER suspension. Core-shell-type polymer particles were synthesized through inverse emulsion polymerization with supplemental addition of a second monomer. The ER suspension containing particles with poly(lithium acrylate) as core and polyacrylamide as shell showed better ER behavior than those without the polyacrylamide shell.