We derived a Reynolds type equation for a ferrofluid lubrication in a squeeze film between two circular plates using Jenkins model and considering combined effects of rotation of the plates, anisotropic permeability in the porous matrix and slip velocity at the interface of porous matrix and film region. We used it to study the case of a parallel-plate squeeze film bearing. Expressions were obtained for dimensionless pressure, load capacity and response time. Computed values were displayed some in tabular form and some in graphical form. The load capacity decreased with increasing values of the radial permeability and attained a minimum when the plates rotated in the opposite directions with nearly the same speed. It increased with increasing values of the axial permeability or material constant of Jenkins model and attained a maximum when the value of the material constant was near unity. It increased or decreased for increasing values of the speed of rotation of the upper plate according as the value of the material constant is zero or not. The response time slowly decreased with increasing values of the radial permeability, speed of rotation of upper plate or the material constant. But, it increased with increasing values of the axial permeability and attained a maximum when the plates rotated in opposite directions with nearly the same speed. Anisotropic permeability affected the bearing characteristics considerably.