This paper reviews the application of Hall position sensors in control and position estimation of permanent magnet synchronous motors (PMSMs). Accurate rotor position and motor speed data are essential for the high-efficiency control of PMSMs in modern industry. Rotor position and motor speed can be measured by mechanical position sensors, which are costly and less reliable, or by rotor position observers, which are sensitive to system models and changes in motor parameters. This paper examines the benefits, limitations, challenges, and uses of low-resolution Hall position sensors in PMSM drives, presenting them as a cost-effective solution for achieving a balance between performance and expense. In addition, the paper discusses recent solutions to issues related to misplaced Hall position sensors and fault-tolerant control algorithms, and gives an outlook to future developments in this area.