This paper is proposed an efficiency optimization control algorithm for a synchronous reluctance motor (SynRM) which minimizes the copper and iron losses. fen exists a variety of combinations of d and q-axis current which provide a specific motor torque. The objective of the efficiency optimization controller is to seek a combination of d and q-axis current components, which provides minimum losses at a certain operating point in steady state. It is shown that the current components which directly govern the torque production have been very well regulated by the efficiency optimization control scheme. The proposed algorithm allows the electromagnetic losses in variable speed and torque drives to be reduced while keeping good torque control dynamics. Simulation results are presented to show the validity of the proposed algorithm.