Improving control dynamics and enabling maximum torque and power conversion for a given electrical drive are important target quantities of drive control algorithms. To utilize the electrical drive to its maximum extent during transient and steady-state operation, a time-optimal continuous-control-set model predictive flux control (CCS-MPFC) for permanent magnet synchronous motors (PMSM) is proposed. This scheme considers torque and current limits as softened state constraints in the CCS-MPFC’s optimization problem to prevent transient overcurrents as well as torque over- and undershoots during time-optimal operating point changes. Furthermore, the overmodulation range including six-step operation can be entered seamlessly to ensure maximum power conversion at high speeds. Fastest transients within the whole modulation range are enabled by a time-optimal harmonic reference generator (TO-HRG). Here, the flux reference of the CCS-MPFC is complemented with a harmonic content that enables operation in the overmodulation region. Further, the reference is pre-rotated during transient operation to attain time-optimal control performance. Extensive simulative as well as experimental investigations for linearly and nonlinearly magnetized PMSMs show that, compared to state-of-the-art methods, time-optimal control performance in the whole modulation range without transient overcurrents as well as torque over- and undershoots can be achieved by the proposed control method.