Methods for estimation of the parameters in the inverter and the PM motor, based on special designed experiments, are given. Input to the system is the reference values for the stator voltages given as duty cycles for the Pulse With Modulated power device. The system output is the measured stator currents. Inverter parameters, stator resistance and inductance are measured at stand-still before the initial start-up of the drive. The strength of the permanent magnet is measured during a initial manual start-up of the drive. The measured parameters are used in a field oriented control system and the performance is experimentally verified.