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In this paper, a new approach is presented for extracting saturated parameters Ld , Lq and permanent-magnet flux linkage λmd with arbitrary load conditions for interior permanent-magnet (IPM) synchronous machines. The procedure starts with the parameter extraction in actual abc reference frame based on transient finite element analysis (FEA) in time domain. Then, the parameters in abc reference frame are transformed to d-q axis reference frame via Park transformation. This approach is able to provide better accuracy and allow easy implementation because the parameters are derived from a realistic physical representation and the effects of the slot leakage and phase-spread harmonic fields are included in the simulation.