Online parameter estimation of permanent magnet synchronous machines is critical for improving their control performance and operational reliability. This paper provides an overview of the recent achievements of online parameter estimation of PMSMs with examples. The critical issues in parameter estimation are firstly analysed, especially the rank-deficient issue and inverter nonlinearities. Then, the stateof-the-art online parameter estimation modelling techniques are reviewed and assessed. Finally, some typical applications and examples are outlined, e.g. estimation of mechanical parameters, improvement of sensored and sensorless control performance, thermal condition monitoring, and fault diagnosis, together with future research trends.INDEX TERMS Condition monitoring, control performance, electrical parameter, fault diagnosis, mechanical parameter, online parameter estimation, permanent magnet synchronous machine, sensorless control.