The purpose of this paper is to identify and reduce a knocking noise from a rear suspension. First, the characteristics of a knocking noise are analyzed experimentally in the frequency domain. It was found that the knocking noise of a passenger room and vibration at a lower arm, a subframe and a floor are strongly correlated. Second, the knocking noise sensitivity is strongly dependent on suspension dynamics characteristics. Moreover, the improvement of ride comfort and noise was achieved simultaneously based on simulation analysis, principle vehicle testing. A design parameter study shows that the trailing arm bush stiffness, shock absorber bump/rebound damping characteristics, floor stiffness and shock absorber insulator bushing are one of the most sensitive parameter to affect the suspension knocking noise. Finally, this paper shows how the suspension knocking noise and ride comfort can be improved considering handling performance.