Pumped-storage hydropower is seen as a promising solution for efficient, large-scale energy storage. One competitive technical solution is the variable-speed hydropower plant (VSHP) configured with a converter-fed synchronous machine (CFSM). These machines are operated with one extra degree of freedom that is not usually optimized, where the CFSM’s rotor-side DC excitation interacts with the stator-side AC excitation. Depending on machine loading, the CFSM will be utilized in conditions far from its original design. In order to deal with this issue, this paper presents a stator flux control (SFC) method for regulating VSHPs in a more efficient way by adjusting the field current to prevent the machine from operating with over-magnetization independent of loading condition, as well as better utilizing the stator-fed converter current, maximizing the utilization of the CFSM. The derived first-principle analytical equations for the proposed SFC have been validated and analyzed in the Matlab/Simulink environment for a large 45 MVA, 375 rpm CFSM, with the measured saturation curve as input. Finally, dynamic transitions between different levels of pumping power reveal the SFC’s ability to help to maintain a unity stator flux in the machine, enabling optimal operation independent of loading level.