This paper focuses on an active vibration isolator based on voice-coil motor (VCM). The isolator may reduce the vibration in the range from 5 to 100Hz in one DOF which can provide the payloads on a satellite a more stable working environment. A VCM is designed and optimized to provide enough feedback force; the state-space model is established according to the basic governing equations of the VCM. The LQR controller based on a reduced-order observer is designed for an output feedback control system. The vibration isolation system is verified by numerical simulations and experiments in which the VCM is installed between the payload and the excitation bottom, with an accelerometer located on the payload in the vertical direction. Both the simulation and experiment results show that the vibration of the payload is reduced effectively using the voice-coil actuator designed here.