This paper presents the on-line implementation of a novel fuzzy logic based speed controller for an interior permanent magnet synchronous motor drive. The fundamentals of fuzzy logic algorithms relating to motor control applications are illustrated. A new fuzzy speed controller for the IPMSM drive is designed. The complete vector control scheme incorporating the fuzzy logic controller (FLC) is successfully implemented in real-time using a digital signal processor board DS 1102 in a laboratory 1 hp interior permanent magnet synchronous motor (IPMSM). The efficacy of the proposed fuzzy logic controller (FLC) based IPMSM drive is verified by simulation as well as experimental results at different dynamic operating conditions. The fuzzy logic controller is found to be more robust for application in the IPMSM drive.