This paper presents a modem approach for speed control of a PMSM using the Particle Swarm Optimization (PSO) algorithm to optimize the parameters of the PI-Controller. The overall system simulated under various operating conditions and an experimental setup is prepared. The use of PSO as an optimization algorithm makes the drive robust, with faster dynamic response, higher accuracy and insensitive to load variation. Comparison between different controllers is achieved, using a PI controller which is tuned by two methods, firstly manually and secondly using the PSO technique. The system is tested under variable operating conditions. Implementation of the experimental setup is done. The simulation results show good dynamic response with fast recovery time and good agreement with experimental controller.