This paper proposes a new speed and flux estimation method which has the robustness against the variation of the electrical parameters of the motor and the superiority in the dynamic characteristics. In the proposed method, the stator currents and the rotor fluxes are observed on the stationary reference frame using the sliding mode concept. And the rotor speed is estimated using the current estimation errors and the observed rotor fluxes based on the Lyapunov stability theory. Also a design method of the observer gain is proposed to minimize the effect of the speed estimation error on the rotor flux observation. The experimental results are shown to verify that the proposed method shows the excellent performances under the variations of motor resistance and inductance.