The high-efficiency and high-power density permanent magnet synchronous motor is widely used in the electric propulsion system of underwater vehicles, and the rotor position sensor is required to achieve high performance control. The Hall-effect position sensor can save the volume, but the low-resolution position signal cannot meet the high-performance control needs of the motor. In this paper, the real-time rotor position is estimated by linear interpolation method based on calculated speed, and used in the vector control system. Due to the Hall signal error the estimated position jump can cause the motor current distortion, the paper proposes a revised method, which is validated by the experimental results.