In this paper, the effects of lateral displacement on the thrust, lift force and (guide force) are investigated by 3-D Finite Element Analysis (FEA) in controlled-PM LSM which has some strong points that electrical power can be minimized and the thrust and lift force can be simultaneously obtained. The variations of airgap flux density and the forces concerning lateral displacement have been analyzed and the effect of lateral displacement and airgap length on the motor performance have been investigated in detail by analysis and experiment results. As the result of this study, the characteristics of PM-LSM concerning with the change of lateral placement and airgap have been made clear quantitatively.