This paper presents an enhanced control scheme for an interior permanent magnet (IPM) synchronous generator based direct drive wind turbine, incorporating maximum torque per ampere trajectory (MTPA) and maximum power extraction (MPE) algorithm. The main advantage of incorporating MTPA trajectory in the control scheme is that it can generate the required torque with a minimum stator current to minimize the stator loss of the IPM synchronous generator. The detail analysis of the control scheme is presented. The control scheme is implemented in Matlab/SimPowerSystems environment. Results confirm the effectiveness of the control scheme to control the direct drive variable speed wind turbine with maximum power extraction.