When demagnetization occurs, direct-drive permanent magnet synchronous wind generator exhibits problems of poor dynamic performance, weak immunity to disturbances and speed fluctuations. Aiming at these problems, this paper proposes a cascaded linear active disturbance rejection control method. First, the mathematical models of the generator during normal operation and demagnetization are described. Second, the linear active disturbance rejection controller (LADRC) for the speed and current loops is designed. The compensation for demagnetization disturbances at the speed loop's input is enabled by the control approach. The current output of the speed loop is imported as a rated value into the LADRC of the current loop. At the same time, the current is compensated at the input. Compensated speed and current accurately track the given values, and the goal of achieving demagnetization fault tolerance is met. Finally, this method is compared with dual-loop Proportional Integral (PI) control. The experimental results affirm that, under this control method, when demagnetization occurs, the speed fluctuation is reduced by 95.7%, the current response time decreased from 0.01 seconds to 0.001 seconds, and the electromagnetic torque ripple amplitude reduced by 50%. These experimental results fully validate the heightened fault tolerance and resistance to interference exhibited by the method advocated in this paper.