Vector controlled induction motor have been widely used in high performance applications. How-ever the performance is sensitive to the variations of motor parameters especially the rotor time constant which varies with the temperature and the saturation of the magnetizing inductance. In this paper the authors propose new identifying method for time-varying parameters of an induction motor which is based on adaptive vector control with serial block algorithm. Vector con-trol system realized on synchronous frame and parameter identification system realized on sta-tionary frame are not easily affected by the vector control frame. Parameter mismatch in the control system results in heavy transient variation in speed and torque response. In order to compensate degradation of the responses at the middle and low speed region adaptive identifier is introduced. To verify the feasibility of this technique compute simu-lations carried out.