Series-winding three-phase PMSMs have a higher bus voltage utilization than the conventional three-phase PMSMs with star connection. This topology is suitable for applications with a limited bus voltage. However, the zero-sequence current controller will reduce the bus voltage utilization of the series-winding PMSMs, which causes problems in the flux-weakening controller design. The conventional flux-weakening control algorithms will cause the series-winding PMSMs to enter the overmodulation region early and degrade the performance of the zero-sequence current suppression algorithm. In this paper, a new flux-weakening controller with a dynamic fundamental voltage limit (FW-DFVL) is designed for the series-winding three-phase PMSM traction system. Firstly, the space vector modulation method combines the proposed virtual zero-sequence vectors to realize both the fundamental current generation and the zero-sequence current suppression. The accurate bus voltage utilization in the fundamental current subspace can be derived from the proposed modulation method. Secondly, the gradient descent method generates the flux-weakening d-axis reference current with the dynamic fundamental voltage, which will converge faster than the conventional PI-based flux-weakening control scheme. Thirdly, the flux-weakening controller in the overmodulation region is also designed where the zero-sequence current will no longer be suppressed. The bus voltage utilization is Vdc in this operation mode. Finally, both the simulation and experimental results are utilized to verify the effectiveness of the proposed FW-DFVL, where faster dynamic performance and higher bus utilization are observed.