The current study describes a novel approach for controlling a Permanent Magnet Synchronous Motor (PMSM) that utilizes intelligent speed sensorless control based on Field-Oriented Control (FOC), by taking inter-turn short-circuit (ITSC) faults into account and by using a Luenberger observer and adaptive fuzzy logic. The speed loop control in conventional indirect vector control systems typically uses a traditional PI regulator with fixed gains, which may not always be enough to achieve the desired control performance. To address this limitation, a Fuzzy Logic Controller (FLC) is proposed for speed control in the field-oriented control FOC of PMSM. This approach is designed to handle the challenges posed by continuous variations in machine parameters, model uncertainties, nonlinear dynamics, and external disturbances. Additionally, the need for a rotor shaft position sensor can lead to disadvantages such as increased cost, weight and noise and reduced reliability. To overcome these issues, the speed and rotor position are estimated using a Luenberger observation, without requiring a separate sensor. In order to evaluate the efficacy of intelligent controller proposed in the present paper, digital simulations were conducted using the MATLAB&SIMULINK, under varying operating conditions. These included sudden changes in reference speed, load torque, and varying degrees of failure for healthy and degraded states. The simulation results demonstrated that the adaptive FLC outperformed the conventional PI controller in robustness, against parameter variation and stator faults. Additionally, the controller was less sensitive to external load torque disturbances and exhibited a fast dynamic response.