Hall sensor is widely used for estimating rotor phase of permanent magnet synchronous motor(PMSM). And rotor position is an essential parameter of PMSM control algorithm, hence it is very dangerous if Hall senor faults occur. But there is scarcely any research focusing on fault diagnosis and fault-tolerant control of Hall sensor used in PMSM. From this standpoint, the Hall sensor faults which may occur during the PMSM operating are theoretically analyzed. According to the analysis results, the fault diagnosis algorithm of Hall sensor, which is based on three rules, is proposed to classify the fault phenomena accurately. The rotor phase estimation algorithms, based on one or two Hall sensor(s), are initialized to engender the fault-tolerant control algorithm. The fault diagnosis algorithm can detect 60 Hall fault phenomena in total as well as all detections can be fulfilled in 1/138 rotor rotation period. The fault-tolerant control algorithm can achieve a smooth torque production which means the same control effect as normal control mode (with three Hall sensors). Finally, the PMSM bench test verifies the accuracy and rapidity of fault diagnosis and fault-tolerant control strategies. The fault diagnosis algorithm can detect all Hall sensor faults promptly and fault-tolerant control algorithm allows the PMSM to face failure conditions of one or two Hall sensor(s). In addition, the transitions between health-control and fault-tolerant control conditions are smooth without any additional noise and harshness. Proposed algorithms can deal with the Hall sensor faults of PMSM in real applications, and can be provided to realize the fault diagnosis and fault-tolerant control of PMSM. Hall sensor is widely used for estimating rotor phase of permanent magnet synchronous motor (PMSM). And rotor position is an essential parameter of PMSM control algorithm, hence it is very dangerous if Hall senor faults occur. But there is scarcely any research focusing on fault diagnosis and fault-tolerant control of Hall sensor used in PMSM. From this standpoint, the Hall sensor faults which may occur during the PMSM operating are theoretically analyzed. The rotor phase estimation algorithms, based on one or two Hall sensor (s), are initialized to engender the fault-tolerant control algorithm. The fault diagnosis algorithm can detect 60 Hall fault phenomena in total as well as all detections can be fulfilled in 1/138 rotor rotation period. The fault-tolerant control algorithm can achieve a smooth torque production which the same control effect as normal control mode (with three Hall sensors). Finally, the PMSM bench test verifies the accuracy and rapidity of fault diagnosis and fault-tolerant control strategies. The fault diagnosis algorithm can detect all Hall sensor faults promptly and fault -tolerant control algorithm allows the PMSM to face failure conditions of one or two Hall sensor (s). In addition, the transitions between health-control and fault-tolerant control conditions are smooth without any additional noise and harshness. Proposed algorithms can deal with the Hall sensor faults of PMSM in real applications, and can be provided to realize the fault diagnosis and fault-tolerant control of PMSM.