Under the condition of load changing, the magnetic field of traditional permanent magnet generators (PMG) is hard to be adjusted, and the mechanical bearings are significantly worn. To overcome the drawbacks above, a novel hybrid excitation bearingless permanent magnet generator (HEBPMG) is proposed in this paper, which has integrated the merits of hybrid excitation permanent magnet generators and magnetic bearings. Firstly, the structure and winding configuration of the HEBPMG are introduced, and then the principles of radial suspension and power generation are presented. The suspension principle as well as power generation principle is analyzed in this paper. Then, the flux linkage and induced voltage equations are derived, and the accurate mathematical model of radial suspension force is built based on the Maxwell tensor method. Subsequently, by means of the finite element analysis software-ANSYS Maxwell, the corresponding electromagnetic characteristics are analyzed to verify the correctness of the mentioned models. In addition, a compensation control strategy based on flux-linkage observation is proposed to solve the problems of unstable suspension force and generating voltage under variable load condition in this paper. Meanwhile, the corresponding control system is constructed and its feasibility is validated by simulation results. Finally, an experimental prototype of a 2.2 kW HEBPMG is tested. Experimental researches show that the HEBPMG can operate steadily under variable load condition and possess good suspension performance and power generation quality.