This paper presents a sensorless hysteresis direct torque control method using matrix converter fed IPM synchronous motor. This method allows a reduction of the harmonic content of the input current without any negative effect on the drive performance. The merits of the original HDTC scheme, simplicity, robustness and high dynamics, are preserved. Moreover, by applying two input vectors at each cycle, the instantaneous control of input power factor is achieved without the displacement estimator, the low-pass filter or the input power factor hysteresis comparator, which are required in the original DTC scheme for matrix converters. The speed and position estimation is based on a speed-adaptive flux observer. Simulation and experimental results are shown to identify the effectiveness and improvement of the proposed method.