Due to its high power, high efficiency, low pollution, and compact size, permanent-magnet synchronous motors (PMSMs) have been widely used in a variety of fields, including electric vehicles, aerospace, wind turbines, and marine devices, which are used in renewable, sustainable, and environmentally friendly energy resources. However, in these practical scenarios, the motor operating conditions are complex and variable. Under high-temperature and high-current conditions, PMSMs may experience demagnetization failures, not only leading to performance degradation but also inducing unexpected failures of the motors. To reduce the risk of unexpected losses caused by demagnetization faults and improve the safety and reliability of motor systems, it is necessary to apply automated monitoring of the magnet flux of the motor’s permanent magnets and achieve real-time diagnosis of early demagnetization faults, ensuring the safe operation of the motor. This review article tries to summarize the current detection methods of the automated monitoring of demagnetization faults in PMSMs. The main online monitoring technologies from both practical and academic perspectives are summarized and their benefits and challenges are reviewed. Finally, the research trends and suggestions for future improvements are provided. This review article not only sheds light on the origins of the automated monitoring of demagnetization faults but also helps to design highly effective and sustainable permanent-magnet synchronous motors.