In this study, a permanent magnet synchronous generator (PMSG) topology with compensated reactance windings in parallel rod configuration is proposed to reduce the armature reactance X (L) and to achieve higher efficiency of PMSG. The PMSG was designed using iron-cored bifilar coil topology to overcome problems of market-dominant rotary type generators. Often the problem is a comparatively high armature reactance X (L), which is usually bigger than armature resistance R (a). Therefore, the topology is proposed to partially compensate or negligibly reduce the PMSG reactance. The study was performed by using finite element method (FEM) analysis and experimental investigation. FEM analysis was used to investigate magnetic field flux distribution and density in PMSG. The PMSG experimental analyses of no-load losses and electromotive force versus frequency (i.e., speed) was performed. Also terminal voltage, power output and efficiency relation with load current at different frequencies have been evaluated. The reactance of PMSG has low value and a linear relation with operating frequency. The low reactance gives a small variation of efficiency (from 90% to 95%) in a wide range of load (from 3 A to 10 A) and operation frequency (from 44 Hz to 114 Hz). The comparison of PMSG characteristics with parallel and series winding connection showed insignificant power variation. The research results showed that compensated reactance winding in parallel rod configuration in PMSG design provides lower reactance and therefore, higher efficiency under wider load and frequency variation.