Designing an optimal tracking controller and system observer is a nonlinear problem in the variable-speed wind energy conversion system (WECS). In this paper, an adjusted feedforward and feedback optimal controller with extended Kalman filter (EKF) is introduced to estimate and control the permanent magnet synchronous generator (PMSG) for the maximum power point tracking (MPPT) with several disturbances of the wind speed. An augmented model of wind turbine and PMSG is expanded, and then the parameters of the optimal controller and estimator are obtained. The dynamic stability of the closed-loop system with feedback-feedforward controller (FFC), EKF and speed controller are analyzed. To compare the dynamic performance of EKF and FFC with the conventional controllers, numerical results are demonstrated with the disturbances of the wind speed and faults in power grid.