Fe-PDMS is a material that mixes iron powders in polydimethylsiloxane (PDMS) to form a magnetically actuated microstructure. In this paper we describe fabrication of Fe-PDMS microstructures. Fe-PDMS material with different weight ratios ranging from 50% to 83.3% is tested for its processing capability, as well as actuation performance. To demonstrate material's usefulness we have designed, fabricated, and tested a micro peristaltic pump that utilize an Fe-PDMS microchannel structures. The Fe-PDMS microchannel for peristaltic pump design is the better choice for disposal biochip applications because of its simplicity and cost-effective in fabrication. In this micro peristaltic pumps study, Fe-PDMS with 75% by weight is found to be the optimal parameter based on the maximum flow rate within processing capability constraints. The flow rate achieved is 92 μl/min for the current micro peristaltic pump design with the channel width (W_c) 1500 μm, channel height (Dc) 150μm and channel membrane thickness (T_m) 80μm. Driving frequency at 2.0 Hz is suggested for the optimal operation condition.