This paper proposes a novel fault diagnosis scheme using parameter estimation of the stator resistance, especially in the case of the open-phase faults of PMSM drives. The stator resistance of PMSMs can be estimated by the recursive least square (RLS) algorithm in real time. Fault diagnosis is achieved by analyzing the estimated stator resistance of each phase according to the fault condition. The proposed fault diagnosis scheme is implemented without any extra devices. Moreover, the estimated parameter information can be used to improve the control performance. The feasibility of the proposed fault diagnosis scheme is verified by simulation and experimental results.