The speed and position control of SRM(Switched Reluctance Motor) needs the encoder or resolver to obtain the rotor position information. These position sensors can be affected by the EMI, dusty, and high temperature surroundings. Therefore the speed and position sensorless control has been studied widely In this paper, the binary observer of the SRM which has two feedback compensation loops to control the speed of SRM is proposed. One loop reduces the estimation error like the sliding mode observer, and the other removes the estimation error chattering occurred in the sliding mode observer. This observer is constructed on the basis of variable structure control theory and has the inertial term to exclude the chattering. This method has a good estimation performance in spite of nonlinear modeling of SRM. The advantages of the proposed method are verified experimentally.