Nowadays, vector control of induction motor drives are increasingly employed in industrial drive systems, motor works on best performance at certain voltage and frequency for certain loads. This project describes a generalized model of the three-phase induction motor by using vector control method and its computer simulation using MATLAB/SIMULINK, it presents the advances made in vector control as applied to high performance AC motor drives. By using this application, it can achieve speed control by controlling the reference speed value and torque value to keep the electromagnetic torque at a constant value. Machine models in d-q representation, implementation issues with AC induction motor, inverters and converters, parameter effects for induction motor vector control are dealt with and simulation results from the project are presented and discussed by computational calculation and graphs to support this theory. The large scope in this model can lead the algorithm designers to direct their efforts to the promising areas and avoid impossible tasks. From this project, the readers can approximately understand the principle of vector control in three-phase AC induction motor drive.