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This study develops a perturbation compensation based sliding‐mode control (PCSMC) strategy of a permanent magnetic synchronous generator (PMSG) for optimal extraction of wind energy. Firstly, PMSG non‐linearities, uncertain parameters, unmodelled dynamics, and stochastic wind speed variations are aggregated into a perturbation. Then, it is estimated by a sliding‐mode state and perturbation observer in the real time. Further, the perturbation estimate is fully cancelled by sliding‐mode controller (SMC) for global control consistency, together with considerable robustness thanks to the sliding‐mode mechanism. In addition, the upper bound of perturbation is replaced by its real‐time estimate; thus more proper control costs could be achieved without over‐conservativeness. Moreover, PCSMC does not require an accurate PMSG model while only the measurement of d‐axis current and mechanical rotation speed is required. Four case studies are carried out, e.g. step change of wind speed, low‐turbulence stochastic wind speed, high‐turbulence stochastic wind speed, and PMSG parameter uncertainties. Simulation results demonstrate that PCSMC can rapidly extract higher power under different wind speed profiles against vector control and SMC. Lastly, a dSpace‐based hardware‐in‐the‐loop experiment is undertaken which validates its implementation feasibility. [ABSTRACT FROM AUTHOR]