A new type of Eddy Current Damping-Rack and Gear Wall (ECD-RGW) was proposed, then Finite Element Method（FEM）simulation was performed and ECD-RGW parameters were analyzed. Firstly, construction of ECD-RGW was introduced in detail. Whereafter, the mechanical performance of ECD-RGW was studied by using COMSOL Multiphysics (a multi-physical finite element simulation software), and 5 dominating design parameters were analyzed. Finally, the vibration reduction effect of ECD-RGW is evaluated, and compared with the Fluid Viscous Damper（FVD）. The results show that, ECD-RGW, as a new eddy current damping device, has good mechanical behavior. Its damping performance can be significantly improved by reducing the air gap length, installing the back iron of conductive plate and increasing the number of permanent magnets, which the existence of conductor plate back iron increases the equivalent damping coefficient of ECD-RGW at low speed to more than 4 times. Furthermore, the material of the conductive plate has a great influence on the critical velocity which is corresponding to the peak damping force, and the thickness of the conductive plate influences the peak damping force and critical velocity. In addition, ECD-RGW has a good vibration reduction effect, which means its application is feasible.