In various permanent magnet synchronous motor (PMSM) drive applications the torque dynamics are an important performance criterion. Here, time-optimal control (TOC) methods can be utilized to achieve highest control dynamics. Applying state-of-the-art TOC methods leads to unintended overcurrents and torque over- and undershoots during transient operation. To prevent these unintended control characteristics while still achieving TOC performance the time-optimal model predictive control (TO-MPC) is proposed in this work. The TO-MPC contains a reference pre-rotation (RPR) and a continuous control set model predictive flux control (CCS-MPFC). By applying Pontryagin’s maximum principle, the TOC solution trajectories for states and inputs of the PMSM are determined neglecting current and torque limits. With the TOC solution, a flux linkage reference for the CCS-MPFC is calculated that corresponds to a pre-rotation of the operating point in the stator-fixed coordinate system. This pre-rotated flux linkage reference is reached in minimum time without overcurrents and torque over- as well as undershoots by incorporating current and torque limits as time-varying softened state constraints into the CCS-MPFC. Simulative and experimental investigations for linearly and nonlinearly magnetized PMSMs in the whole speed and torque range show that, compared to state-of-the-art TOC methods, overcurrents and torque over- as well as undershoots are prevented by the proposed TO-MPC.