To improve the performance of anisotropic magnetoresistance (AMR) sensor, a low-noise driving circuit for the AMR sensor was developed and the magnetic field noise spectral densities of 12 pT/root(Hz) at 1 kHz and 20 pT/root(Hz) at 100 Hz were achieved. The driving circuit could operate in amplifier mode or feedback mode. For the driving circuit with feedback, the distortion of the system was reduced and the AMR sensor was suitable for the applications in the environment without shielding. The Set/Reset method was used to reduce the low frequency noise of the AMR sensor. Due to the low noise of AMR sensor, the eddy current testing (ECT) system with the AMR sensor had the advantage of detecting deep and small defects in metal structures. The dual frequency ECT system was developed to reduce the influence of lift-off variance. Using the ECT system with the AMR sensor, we successfully detected the small defects in the combustion chamber of liquid rocket.