This paper presents the control algorithm for maximum efficiency drives of an induction motor system with the high dynamic performance. This system uses a simple model of the induction motor that includes equations of the iron losses. The model, which only requires the parameters of the induction motor, is referred to a field-oriented frame. The minimum point of the input power can be obtained at the steady state condition. The proposed optimal efficiency control algorithm calculates the reference torque and flux currents for the vector control of the induction motors. A 32 bit floating point TMS320C32 DSP chip implements the drive system with the efficiency optimization controller. The results show the effectiveness of the control strategy Proposed for the induction motor drive.