A damping system for a heave compensator for an off-shore oil rig includes a hydraulic cylinder having a piston and a housing. The hydraulic cylinder is configured for accepting a hydraulic fluid. There is a flow passage for restricting the flow of the hydraulic fluid during movement of the piston in the housing. The hydraulic fluid is a magnetic fluid and the damping system includes a magnetic fluid management system for controlling a magnetic field at the flow passage. A heave compensator including such a damping system, and a method for controlling the damping of a heave compensator are also disclosed, the method including subjecting a magnetic fluid to a magnetic field at a flow passage for restricting the flow of the magnetic fluid.