The method of rotor position detection and its signal processing circuit for high speed permanent magnet synchronous motor (PMSM) are proposed in this paper. The optoelectronic position sensor and appropriate processing way are adopted to obtain position information accurately and rapidly. The experimental result shows that the method can accurately detect the rotor position for a PMSM with rated speed of 60000 r/min. The method is also applied on high speed PMSM direct torque control (DTC) system by simulation in this research. It is shown that the proposed method can be used for high speed PMSM which has provided theoretical basis for closed-loop control.