The aim of this research is to study the nonlinear dynamic behavior of a flexible shaft supported by smart hydrostatic squeeze film dampers, which are filled with a negative electrorheological fluid (NERF). A nonlinear model of the hydrostatic squeeze film damper has been developed in order to study the effect of the electrorheological fluid on the dynamic behavior of a flexible shaft. The results obtained are discussed and compared with the linear model, which is restricted to only small vibrations around the equilibrium position. A new smart hydrostatic squeeze film damper is proposed to reduce the transient response of the shaft and transmitted forces by applying an electric field to the NER fluid, which results in modifying its viscosity. The results show that it is possible to effectively monitor the electric field and the viscosity of the fluid inside the hydrostatic squeeze film dampers (HSFD) for a better control of flexible shaft vibration and bearing transmitted forces.