In this paper, a new method for sensorless starting and controlling of Switched Reluctance Motor-Generator (SRMG) is presented. The method uses Amplitude Modulation (AM) technique. The controller is used to control a new SRMG by two separated layers of 4 stator poles and 2 rotor poles. A DSP processor generates digital signal firstly which is then changed to low voltage sinusoidal signal by a digital to analog convertor (D/A). The signal is then given to the field-assisted windings of each phase of the motor. The response of the winding to the signal which includes the rotor location data is sampled which is after filtering and AM demodulation given to an analog to digital convertor (D/A). Then, the digital data is analyzed by the DSP and the rotation commands are generated and transmitted to the SRGM phase drivers. In the paper, the controller sections are explained and at the end, the performance results are presented.