The paper deals with application of giant magnetostrictive materials for power harvesting from vibration. Mathematical modelling and design of magnetostrictive electric generators (MEG) are considered. The mathematical model, original MEG and test rig have been developed for simulation and experimental study of conversion of mechanical energy of vibration into electrical energy using Terfenol-D as an active material. Simulation and experimental results have confirmed functionality of designed MEG. Generator using Terfenol-D rod with 50mm in length and 15mm in diameter has shown efficiency of the transduction processes up to 25% with maximum power generation up to 240W.