Abstract: High-speed permanent magnet synchronous motor (PMSM) drive systems typically require low carrier ratio operation due to the limited switching frequency of power devices. As a result, the system delay is relatively high, and thus a high-performance current controller is required. However, due to discretization error, the commonly used complex vector PI controller designed in the continuous domain is unable to fully realize dq-axis decoupling. Additionally, the low damping ratio pole of the PMSM model itself is included in the disturbance transfer function under complex vector PI control, leading to poor anti-disturbance capability, especially for disturbances near negative fundamental frequency. Therefore, the Dahlin algorithm with state feedback control is proposed in this paper. It first uses the voltage of the delay link as feedback to fully decouple the system. Then, the output current feedback is adopted to enlarge system damping and thereby to suppress disturbance. Finally, the Dahlin controller designed for the decoupled and damped system is applied to improve the stability margin. The experimental results validate that the proposed Dahlin controller with feedback control has better dq-axis decoupling performance, smaller current overshoot, lower system oscillation and higher anti-disturbance capability compared to the complex vector PI controller.