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In this paper, the concept of efficiency evaluation of permanent magnet (PM) synchronous machines using synthetic loading technique is described. Synthetic loading is a technique of efficiency evaluation that eliminates the need for a mechanical load connected to the test machine. The model for synthetic loading is described for the permanent magnet (PM) synchronous machine. Synthetic loading is simulated for PM synchronous machine using MATLAB and SIMULINK programme. The synthetic loading technique is carried out experimentally in the laboratory. The minimum requirements of inverter used to conduct synthetic loading are discussed. Simulation and experimental results show that synthetic loading technique is able to evaluate the efficiency of PM synchronous machine.