Abstract—Demagnetization faults have a negative impact on the behavior of permanent-magnet synchronous machines, thus reducing their efficiency, generating torque ripple, mechanical vibrations, and acoustic noise, among others. In this paper, the displacement of the shaft trajectory induced by demagnetization faults is studied. It is proved that such faults may increase considerably the amplitude of the rotor displacement. The direct measure of the shaft trajectory is performed by means of a noncontact self-mixing interferometric sensor. In addition, the new harmonics in the back electromotive force (EMF) and the stator current spectrum arising from the shaft displacement are analyzed by means of finite-element method (FEM) simulations and experimental tests. Since conventional finite-element electromagnetic models are unable to predict the harmonics arising from the shaft trajectory displacement, an improved finite-element model which takes into account the measured trajectory has been developed. It is shown that this improved model allows obtaining more accurate back EMF and stator current spectra than those obtained by means of conventional models. This work presents a comprehensive analysis of the effects generated by demagnetization faults, which may be useful to develop improved fault diagnosis schemes