This paper presents an observer-based fuzzy sliding mode controller for sensorless Permanent Magnet Synchronous Motor (PMSM) drive based on the Field Programmable Gate Array (FPGA) technology. For enhancement of robustness, a sliding mode observer (SMO) is proposed to estimate first the current and back electromotive force (EMF), then to derive the flux angle. These estimated values together with the computed rotor speed of the motor are fed back for the control purpose in both the current loop and the speed loop.