If damping alloy is used as structural material, a structure with high damping performance can be produced and its vibration and noise can be reduced. Damping mechanism of the damping alloy is to convert vibration energy into thermal energy. The damping performance of the damping alloy is not as good as it is used in a dynamic damper. This paper proposes a method of enlarging equivalent loss factor of a damping alloy spring by using a negative spring constant and it is confirmed that the equivalent loss factor of a damping alloy cantilever becomes large by the attraction force of magnet used as the negative spring constant. Optimal design of the dynamic damper which consists of the damping alloy cantilever and a pair of magnets is explained. The vibration suppression effect due to the dynamic damper is demonstrated by means of measuring the compliance and the time history response by impact excitation. The vibration suppression effect depends on the vibrational amplitude due to nonlinearity of the attraction force of magnet but can be sufficiently expected in comparison with the case without the dynamic damper.