This paper proposes the rotor position and rotor speed estimation for an interior permanent magnet synchronous machines (IPMSM) using Unscented Kalman Filter (UKF) in alpha-beta coordinate system. Conventional algorithms using UKF are based on the simple observer model of IPMSM in d-q coordinate system. Rotor acceleration is neglected within the sampling step. An expansion of the observer model in an alpha-beta coordinate system with the consideration of the rotor speed variation provides the improved rotor position and speed estimation. The results show good stability concerning the expansion of observer model for the IPMSM.