In this paper a control algorithm for the efficiency improvement of permanent magnet synchronous generators (PMSG) is presented. The proposed algorithm reduces the losses of the generator without affecting its performances. In details, after a description of a dynamic model of the PMSG, which has been purposely modified in order to take into account the iron losses, the basic equations and the constraints to obtain the loss minimization are presented and discussed. Some simulations of a specific PMSG employing the proposed algorithm are performed. The results of these simulations show that enhancement of the efficiency up to 3 % can be reached in comparison to a PMSG using a traditional control strategy.