A novel DSP (Digital Signal Processor) based software AC servo system with a 3-phase PM synchronous motor is proposed. The newly produced DSP TMS320F243 is used, which has the performance of fast speed and rich peripheral interface. By utilizing Field Oriented Control (FOC), Space Vector PWM (SVPWM) and the digital PI control strategies, using a optical encoder as speed and position sensors, the speed and position control of software servo systems are implemented. The system architecture and software of the AC servo drives are introduced. A range of experiments including speed control and position control has been carried out. The test results are given.