The methodology was developed to design an Active suspension for a passenger car by designing a controller, which improves performance of the system with respect to design goals compared to Passive suspension system. Mathematical modeling has been performed using a two degree-of-freedom quarter car model for Passive and Active suspension system considering only bounce motion to evaluate the performance of suspension with respect to various contradicting design goals. PID controller design approach has been examined for the Active suspension system. Suspension travel in active case has been found reduced to more than half or almost null of their value in passive system. By including an active element in the suspension, it is possible to reach a better compromise than that of using purely passive elements. The potential for improved ride comfort and better road handling using PID controller design is examined. The development of the Quarter car in the virtual environment can provide an insight into the actual condition when a car hits the road bump, thus provides more intuitive way to compare or verify the system. This will allow user to imagine and relate to the real plant that being modeled in better way as well as it will help in rapid prototyping. The objectives of this project have been achieved. Dynamic model for linear quarter car suspensions systems has been formulated and derived. Only one type of controller is used to test the systems performance which is PID.