In this paper, a compound sliding mode velocity control scheme with a new exponential reaching law (NERL) with thrust ripple observation strategy is proposed to obtain a high performance velocity loop of the linear permanent magnet synchronous motor (LPMSM) control system. A sliding mode velocity controller based on NERL is firstly discussed to restrain chattering of the conventional exponential reaching law (CERL). Furthermore, the unavoidable thrust ripple caused by the special structure of linear motor will bring about velocity fluctuation and reduced control performance. Thus, a thrust ripple compensation strategy on the basis of extend Kalman filter (EKF) theory is proposed. The estimated thrust ripple will be introduced into the sliding mode velocity controller to optimize the control accuracy and robustness. The effectiveness of the proposal is validated with experimental results.