This paper proposes a zero-sequence model-based sensorless control strategy for open-winding permanent-magnet synchronous machine (OW-PMSM) with common dc bus. The third harmonic back electromotive force (EMF) in zero-sequence is utilized to estimate the rotor position information. The novelty is that the third harmonic back EMF is reconstructed based on the zero-sequence model together with zero-sequence current, instead of using voltage transducer and three phase resistance network which can be eliminated from the control system. Due to the essence of back EMF, the developed method is appropriate for the applications including wind power generation and motor drives operating above certain speed. Meanwhile, the phase shift-based space vector pulse width modulation method for OW-PMSM is also presented for easier implementation to form zero voltage disturbance in zero-sequence from the inverter side and hence the corresponding influence can be consequently minimized. The torque ripple, loss, and parameter sensitivity analysis are also carried out, as confirmed by predictions of two-dimensional finite element analysis. Due to the essence of decouple, the estimation can be more robust than the conventional fundamental model-based sensorless methods. Finally, the effectiveness of the proposed method is validated experimentally on a 3-kW OW-PMSM drive system with 2.5 kg·m2 total inertia.