This paper deals with the detection of the winding faults of the three-phase PMSM. The algorithm based on the three-phase model of the winding and the extended Kalman filter is used for inter-turn short detection. Additionally, the functionality of the sensors used for the detection algorithms is verified. The decision system is in charge of the diagnosis of the fault (winding/sensors). All the presented algorithms were implemented in Simulink and tested on data measured on a real inverter with the motor connected to the dynamometer. Algorithms were also tested on a microcontroller.