This paper presents the design and analysis of a permanent magnet synchronous motor (PMSM) considering the axial asymmetric PM overhang for a smart actuator (SA) application such as an isokinetic exercise machine. This structure helps take advantage of the motor space effectively and makes the system small in size and light in weight. However, two drawbacks related to the performance of motor occur when the axial asymmetric PM overhang is used: (1) an axial attractive force (AAF) is created, which can produce motor noise and vibration; (2) the torque of motor is reduced compared with the symmetric PM overhang model. We used five steps to solve these problems. Firstly, the AAF according to the variation in axial position of the rotor to the stator was calculated and analyzed. Secondly, the torque was calculated under the same conditions to confirm that the system requirements were satisfied. The three-dimensional finite element analysis was used to determine the AAF and torque. Thirdly, the appropriate axial position of the rotor to the stator was suggested considering the analysis results and space inside the housing. Next, the commercial bearing type was chosen so that the total force acting on the bearing was below the bearing load limit to ensure motor stability. Finally, a prototype model was made and tested to confirm the accuracy of the analytical results. Through this study, by using the axial asymmetric PM overhang, the total length of SA was reduced by 5mm and the performance of motor was guaranteed.