This paper proposes an effective approach to detect, isolate, and identify fault severity and post fault operation of permanent magnet synchronous motors (PMSM) in the presence of stator winding turn fault. The paper proposes fault tolerant operation of PMSM under post condition with stator winding turn fault by using grounded neutral point through controllable impedance using artificial neural network (ANN). The fault detection and diagnosis is achieved by using a strategy based on the analysis of the ratio of third harmonic to fundamental waveform obtained from Fast Fourier Transform (FFT) of magnitude components of the stator currents. The strategy helps to detect stator turn fault, isolate the faulty components, and estimate different insulation failure percentages and remedial operation of PMSM in the presence of stator winding turn fault. The model of PMSM with stator winding turn fault is simulated at different load conditions using a (2-D) Finite Element Analysis (FEA). Experimental results demonstrate the validity of the proposed technique.