A hgih efficiency and good dynamic performance drive system of an induction motor is presented in this paper using vector control technique. If the induction motor is driven under light loads with rated flux, the iron loss is excessively large compared with the copper loss, resulting in poor motor efficiency. High efficiency drive of an induction motor can be achieved by adjusting the flux level which leads the total motor loss to be a minimum value. Generally reducing the flux degrades the dynamic performance, but the dynamic performance of the proposed system is also maintained high. If the d-axis is coincident with rotor flux phasor in synchronous rotating reference frame, the stator current can be decoupled as flux component and torque component. At steady state, the developed motor torque is proportional to the product of the flux and torque component. The combination of the two components minimizing the motor loss could be found with numerical method. As the procedure to obtain the optimal combination is too hard, it is found experimentally. The system block diagram is suggested for maximum efficiency control. The proposed system is studied through digital simulation and verified with experiment. The experimental results show the possiblity of a high efficiency drive with good dynamic performance of maximum efficiency control.