Sensorless electric drive is an enabling technology in the realization of submersible propulsion systems such as the integrated motor/propulsor (IMP). The IMP concept features an electric motor embedded within the shroud of an undersea vehicle’s propulsor. This arrangement provides many advantages over conventional propulsion systems but prevents the use of conventional rotor position sensors because of reliability issues in the harsh submerged environment. In this paper, a position sensorless drive is applied to the IMP and experimental results are presented to demonstrate the effectiveness of the proposed technique.