The accuracy of parameter identification has important influence on the performance and control method of permanent magnet synchronous motor(PMSM). Most of the previous parameter identification methods such as least square method failed to consider the influence of temperature on parameters which lead to low parameter identification accuracy and poor control performance. In this paper, the influence of temperature on PMSM parameters is analyzed by calculation and simulation. It is proved that the temperature has great influence on the parameter identification results. Thus, a parameter identification model of PMSM considering temperature was established, and an improved parameter identification algorithm considering both resistance and inductance with temperature was proposed. Finally, simulation experiments show that this method can improve the speed and accuracy of parameter identification, and reduce the identification error.