In this paper, an estimator scheme for the rotor speed and flux of an induction motor is proposed on the basis of a fourth-order electrical model. It is assumed that only the stator currents and voltages are measurable, and that the stator currents are bounded. There are a number of common terms in the motor dynamics, and this is utilized to find a simple error model involving some auxiliary variables. Using this error model, the state estimation problem is converted into a parameter estimation problem assuming that the rotor speed is constant. Some stability properties are given on the basis of Lyapunov analysis. In addition, the rotor resistance, which varies with the motor temperature, can also be estimated within the same framework. The effectiveness of the proposed scheme is demonstrated through computer simulations and experiments.