In this paper, a novel control scheme of three-phase PWM rectifiers using only dc-side sensors is proposed. The phase currents are reconstructed from switching states of the rectifier and the dc output current. For effective current control, the currents are estimated by a predictive state observer. Also, both the phase angle and the magnitude of the source voltage are estimated by controlling the deviation between the model current and the system current to be zero. The validity of the proposed ac phase and current sensorless technique has been verified by experimental results.