Field Oriented Control of IPMSM with Variable Direct and Quadrature Axis Inductance presents different novel speed control techniques for the field-oriented control of ac motors, particularly interior permanent magnet synchronous motor (IPMSM). Theoretical basis of each algorithm is explained in detail and then performance of each is tested by simulations. The complete drive system with PI and fuzzy based controllers have been simulated with Matlab Simulink. Here, a robust controller and a fuzzy logic controller (FLC) have been designed and incorporated in simulation model of the drive system. Fuzzy controllers have the ability to handle nonlinear system uncertainties, such as, step change in command speed, load compact, saturation and parameter variations. The results of PI controller based IPMSM drive have been compared with those obtained from FLC based ac motor drives. Simulation results proof the efficacy of the fuzzy controller based IPMSM drive over the PI controller.