This paper presents the error analysis and experimental identification of a magneto-hydro-dynamic (MHD) sensor system for space application. MHD sensor is an alternative to measure the angular vibration ofμrad in a broad frequency band. Because the quality of a MHD sensor decides the precision and resolution of spaceborne inertial navigation system, the error and noise shall be the important standards to improve its performance. In combination with hypothetical model of data analysis, sensitivity performance and error model of the designed MHD sensor is analyzed and verified by numerical modeling of sensor assembly. The sensor′s error analysis motivates the importance of clarifying the gravity orientation and temperature condition, because the parameters contribute to the largest part of bias error. The inconformity of dynamic permeability in the transformer occupies the half of the total error when the temperature is constraint. The noise of the differential amplifier should be emphasized. The result will provide a reference to improve the performance of MHD sensor.