Magnetometer is a highly advantageous sensor for determining a spacecraft’s attitude. This article provides a solution to the problem of spacecraft attitude estimation using magnetometer measurements only. To ensure full observability of spacecraft attitude states, it is necessary to use at least two types of sensors. Consequently, utilizing a single sensor, such as the magnetometer, poses a significant challenge for any attitude estimation algorithm, including the extended Kalman filter (EKF). Moreover, implementing the EKF algorithm, or any other attitude estimation algorithm, is computationally intensive. To address these issues, an algorithm has been developed that estimates spacecraft attitude angles and attitude rates using a sequential extended Kalman filter (SEKF). This algorithm offers numerous benefits over those found in the literature such as high accuracy, low computational resource requirements, the ability to converge even with large initial attitude and angular velocity estimation errors, and the ability to function even if two of the three measurement channels of the magnetometer are not functioning. With these benefits, the developed SEKF algorithm is capable of operating in all spacecraft operational modes, delivering accurate performance and computation time. In spite of measurements with large noise values, the high accuracy achieved by the SEKF algorithm enables the magnetometer to serve as the sole source of attitude information, even if one or two magnetometer measurement channels are not functioning.