This paper presents a modified adaptive sliding mode controller (MASMC) to control the machine side converter of sensorless direct-drive permanent magnet synchronous generator (PMSG) wind Turbines. The MASMC is applied to control the components of stator currents in the synchronous reference frame of PMSG. The proposed MASMC involves two integral switching functions for controlling direct and quadrature stator currents components. Moreover, a modified adaptive sliding mode observer (MSMO) has been implemented in order to estimate the rotor position and speed. In the MASMC, the low pass filter in the conventional sliding mode observer (SMO) has been eliminated in order to eliminate its problems. The parameters of MSMC have been adapted based on the fuzzy logic to overcome the poor dynamic performance of the constant parameters. In order to test the proposed control scheme, simulations using MATLAB/Simulink have been carried out. Moreover, the validation of the proposed controller has been done by comparing its performance with the performance of PI controller. The simulation results demonstrate the effectiveness of the proposed control system.