Vibrations generated by machine driveline components can cause excessive noise and structural dam- age. Magnetostrictive materials, including Galfenol (iron-gallium alloys) and Terfenol-D (terbium-iron- dysprosium alloys), are able to convert mechanical energy to magnetic energy. A magnetostrictive vibration ring is proposed, which generates electrical energy and dampens vibration, when installed in a machine driveline. A 2D axisymmetric finite element (FE) model incorporating magnetic, mechanical, and electrical dynamics is constructed in COMSOL Multiphysics. Based on the model, a parametric study considering magnetostrictive material geometry, pickup coil size, bias magnet strength, flux path design, and electrical load is conducted to maximize loss factor and average electrical output power. By connecting various resistive loads to the pickup coil, the maximum loss factors for Galfenol and Terfenol-D due to electrical energy loss are identified as 0.14 and 0.34, respectively. The maximum av- erage electrical output power for Galfenol and Terfenol-D is 0.21 W and 0.58 W, respectively. The loss factors for Galfenol and Terfenol-D are increased to 0.59 and 1.83, respectively, by using an L-C resonant circuit.