The Hall sensor is the most commonly used position sensor of the permanent magnet brushless direct current (PMBLDC) motor. Its failure may lead to a decrease in system reliability. Hence, this article proposes a novel methodology for the Hall sensors fault diagnosis and fault-tolerant control in PMBLDC motor drives. Initially, the Hall sensor faults are analyzed and classified into three fault types. Taking the Hall signal as the system state and the conducted MOSFETs as the system event, the extended finite state machine (EFSM) of the motor in operation is established. Meanwhile, a motor speed observer based on the super twisting algorithm (STA) is designed to obtain the speed signal of the proposed strategy. On this basis, a real-time Hall sensor fault diagnosis strategy is established by combining the EFSM and the STA speed observer. Moreover, this article proposes a Hall signal reconstruction strategy, which can generate compensated Hall signal to realize fault-tolerant control under single or double Hall sensor faults. Finally, theoretical analysis and experimental results validate the superior effectiveness of the proposed real-time fault diagnosis and fault-tolerant control strategy.