This paper presents time-optimal control of an interior permanent-magnet synchronous machine (IPMSM) in voltage-limited and current-limited conditions using deadbeat-direct torque and flux control (DB-DTFC). A commanded air-gap torque and flux can be achieved by the end of each pulse width modulation (PWM) period using the DB-DTFC. However, it may take several PWM periods to achieve a desired torque that is physically infeasible in one step when operating near the voltage limit. The large torque command can be shaped as a feasible trajectory so that the deadbeat torque and flux is achieved for every sample time instant (switching period) along the trajectory. In this paper, the feasible trajectory is dynamically optimized to achieve a large torque command in the shortest time during the voltage-limited and current-limited operation. A loss-minimizing stator flux linkage is used during steady-state operation to reduce the computational complexity of the dynamic optimization and to operate the IPMSM at the loss-minimizing condition. The voltage-limited and current-limited operation of IPMSM drives is evaluated in both the simulation and experiment in this paper.