This paper studies and proposes the vector space decomposition-based direct torque control (DTC) scheme for the T-type neutral-point-clamping (T-NPC) three-level inverters-fed double-stator-winding permanent magnet synchronous machine (PMSM) drive, which provides an effective solution for high-power high-reliability applications. The key is to propose a simple but effective space vector modulation (SVM) for DTC of T-NPC double-stator-winding drives-based two-step voltage vector synthesis, in such a way that good dynamic response and harmonic performance are obtained. The closed-loop controllers on harmonic subspace are incorporated to suppress the possible harmonics induced from back electromotive force and unbalanced parameters in phase windings of electrical machine. Furthermore, a hybrid current control is proposed for fault-tolerant operation of the T-NPC double-stator-winding PMSM drives under one-phase open-circuit conditions. In the hybrid current controller, the healthy winding still uses the SVM-DTC control while the faulty winding uses the closed-loop current controller to track the optimized current references. Both simulation and experimental results are presented to verify the performance of the proposed switching strategies and control schemes.