In general, Monitoring and fault diagnosis in induction motor have been a challenging task for the engineers in recent industrial applications. Current monitoring techniques are usually applied to detect various types of induction motor faults. The monitoring system obtains information about the machine in the form of primary data through the use of modern signal processing techniques and also using different soft computing techniques. The present work proceeds with the fault diagnosis in voltage source inverter fed induction motor using fuzzy logic for different types of faults such as open circuit fault, Double line to ground fault and three phase unbalanced fault. These different faults are created over a period of time and are diagnosed using fuzzy controller based on the knowledge of rule base. In this project fuzzy logic is used to make decisions about the stator condition. In fact, fuzzy logic is reminiscent of human thinking processes and natural language enabling decisions to be made based on vague information. The motor condition is described using linguistic variables. Fuzzy subsets and the corresponding membership functions describe stator current amplitudes.