The invention relates to a magnetic powder clutch. The magnetic powder clutch comprises a housing, an input shaft and an output shaft. The housing is formed by an upper housing and a lower housing which are installed coaxially. The upper housing and the lower housing are respectively provided with the output shaft and the input shaft by upper and lower bearings. The lower housing is internally provided with a lower base. The input shaft is provided with an active rotor. The output shaft is provided with a driven rotor. A bearing is rotatably connected between the driven rotor and the upper housing and between the input shaft and the lower base. A sealed annular groove working cavity is formed after assembling the active rotor and the driven rotor, and the annular groove working cavity is filled with the magnetic powder. An exciting coil is installed in the annular groove of the lower base. The magnetic powder clutch has the characteristics of simple and convenient production and assembly, stable running and small noise. The structure design is capable of satisfying the vertical installation of some special occasions completely.