The control method of programmable dynamometer for overall test of machine is to load the reference torque which is computed from torque transducer into motor under test. But the torque information detected from torque transducer have a lot of noise when the load torque of meter is a small quantity or changing. Thus, torque transducer must have a low pass filter to detect a definite torque information. But The torque delay generated by filter with torque transducer occur a torque trouble for meter torque of programmable dynamometer. Therefore, this kind of system could not perform dynamic and nonlinear load. In this paper, the control method using the load torque observer without a measure for torque transducer is Proposed. The proposed system improved the problem of the torque measuring delay with torque transducer, and the load torque is estimated by the minimal order state observer based on the torque component of the vector control induction meter. Therefore, the torque controller is not affected by a load torque disturbance. To verify a superiority of the proposed control algorithm, the analysis for a root locus of a conventional control method and the proposed one, and simulation and experiment is performed. Therefore we hope to be extended in industrial application.