The relationships between redundant logic and don't care conditions in combinational circuits are well known. Redundancies in a combinational circuit can be explicitly identified using test generation algorithms or implicitly eliminated by specifying don't cares for each gate in the combinational network and minimizing the gates, subject to the don't care conditions. In this article, we explore the relationships between redundant logic and don't care conditions in sequential circuits. Stuck-at faults in a sequential circuit may be testable in the combinational sense, but may be redundant because they do not alter the terminal behavior of a nonscan sequential machine. These sequential redundancies result in a faulty State Transition Graph (STG) that is equivalent to the STG of the true machine. We present a classification of redundant faults in sequential circuits composed of single or interacting finite state machines. For each of the different classes of redundancies, we define don't care sets which if optimally exploited will result in the implicit elimination of any such redundancies in a given circuit. We present systematic methods for the exploitation of sequential don't cares that correspond to sequences of vectors that never appear in cascaded or interacting sequential circuits. Using these don't care sets in an optimal sequential synthesis procedure of state minimization, state assignment, and combinational logic optimization results in fully testable lumped or interacting finite state machines. We present experimental results which indicate that medium-sized irredundant sequential circuits can be synthesized with no area overhead and within reasonable CPU times by exploiting these don't cares.