Accurate rotor position sensing is critical for effective Field-Oriented Control (FOC) of Permanent Magnet Synchronous Machines (PMSMs), which directly influences the magnitude, polarity and harmonic content on torque when compared with the desired output. Position sensor harmonic errors is a primary form of position error that may influence measured rotor position accuracy. As machine and drive systems become increasingly integrated, a variety of factors contribute to the harmonic distortion present in the position signal. Conventional compensation methods rely on look-up tables that lack the ability to actively mitigate harmonics. This paper presents a real-time, adaptive and self-regulating method for mitigating position signal harmonics in PMSMs, validated through both simulation experimental results for consistent performance under different harmonic conditions.