This paper describes a synchronous machine drive system in which the advantage of a method for power factor correction is taken and practiced. In this method the phase currents are forced, at definite instantaneous values, to bypass the three phases of the machine. Also a new control circuit for the system is theoretically clarified and then practically performed. Here the airgap flux and the induced torque are controlled in accordance to the speed. Thereafter the amplitude of the stator current and its phase angle are controlled to satisfy the load torque and the magnetizing conditions. The machine available is a small permanent magnet synchronous machine and therefore a constant-current small-power rectifier inverter set with a transistorized inverter is used to avoid the complicity of the firing commutating circuits. Using such a type of Invertors and applying this method of power factor correction, the permanent-magnet machine can run with a nearly unity power factor. The obtained results of the steady-state is well as the transient responses are given.