This paper presents a novel, smart and portable Active Knee Rehabilitation Orthotic Device (AKROD) designed to train stroke patients to correct knee hyperextension during stance and stiff-legged gait (defined as reduced knee flexion during swing). The knee brace provides variable damping controlled in ways that foster motor recovery in stroke patients. A resistive, variable damper, electrorheological fluid (ERF) based component is used to facilitate knee flexion during stance by providing resistance to knee buckling. Furthermore, the knee brace is used to assist in knee control during swing, i.e. to allow patients to achieve adequate knee flexion for toe clearance and adequate knee extension in preparation to heel strike. The detailed design of AKROD, the first prototype built, closed loop control results and initial human testing are presented here.