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In this paper, an optimal control technique for n-phase permanent-magnet (PM) machines under various open circuit faults is presented. Under the fault conditions, the currents in the healthy phases are controlled to compensate phase loss and to produce the required output torque. The proposed control technique ensures continuous operation of the machines while producing minimum torque ripples and minimum stator ohmic loss. The control technique is based on the instantaneous power balance theory. To set the summation of the phase currents equal to zero, a constraint is incorporated in the derivation of the control technique. A five-phase PM machine is considered to demonstrate the proposed open circuit fault-tolerant control strategy. Simulation and experimental results are provided for validation.