A magnetic fluid based deformable mirror (MFDM) that could produce a large stroke more than 100 μm is designed and demonstrated experimentally with respect to the characteristics of the aberration of the liquid telescope. Its aberration correction performance is verified by the co-simulation using COMSOL and MATLAB. Furthermore, the stroke performance of the MFDM and the decentralized linear quadratic Gaussian (LQG) mirror surface control approach are experimentally evaluated with a prototype of MFDM in an adaptive optics system to show its potential application for the large aberration correction of liquid telescopes.