The electrical frequency synchronized periodic torque ripple exits in the AC motor. There are various sources of torque ripple in AC motor such as current measurement error, dead time, etc. This paper proposes a compensation algorithm which suppresses undesired side effect known as the periodic torque ripple of AC motor. The torque ripple compensation classified as the speed ripple detector and torque ripple compensator. This paper proves a speed ripple minimization at steady state by analysis of torque ripple compensator. A new speed ripple detector improves the performance of torque ripple compensation algorithm. The simulation and experimental results show that the compensation algorithm is effective and the torque ripple compensation method improves the performance of speed ripple detector by eliminating torque ripples effectively.