The study investigates an energy harvesting system utilising rotary motion. The system has three components: a rotary MR damper to vary the damping characteristics, a rotary power generator (energy extractor) producing electrical power, and a conditioning electronics unit to interface directly with the damper and the generator. The objective of the study is to examine the system performance through experiments. The paper outlines the structure of the damper and the generator, provides selected results of examination of the system components and the whole system under idle run and under load for the assumed speed range. The results demonstrate that the system is adaptable to external excitations, does not require an extra power supply and provides a smart solution with potential applications to rotary motion control.