This paper presents sensorless speed control of a cylindrical permanent magnet synchronous motor (PMSM) using the adaptive integral binary observer. In view of the composition with a main loop regulator and an auxiliary loop regulator, the normal binary observer has the feature of chattering alleviation in the constant boundary layer. However, the steady state estimation accuracy and robustness are dependent upon the thickness of the constant boundary layer. In order to improve the steady state performance of the binary observer, a new binary observer is formed by the addition of extra integral dynamics to the existing switching hyperplane equation. Also, because the parameters of the dynamic equations such as machine inertia or viscosity friction coefficient are not well known and these values can be changed during normal operations, there are many restrictions in the actual implementation. The proposed adaptive integral binary observer applies an adaptive scheme so that the observer may overcome the problems caused by using dynamic equations. The rotor speed is constructed by using the Lyapunov function. The observer structure and its design method are described. The experimental results of the proposed algorithm are presented to prove the effectiveness of the approach.