In this paper, an induction motor rotor fault diagnosis system using current signals, which are measured using the axis-transformation method is presented. Inverter-fed motor drives, unlike line-driven motor drives, have stator currents which are rich in harmonics and therefore fault diagnosis using stator current is not trivial. The current signals for rotor fault diagnosis need precise and high resolution information, which means the diagnosis system demands additional hardware such as a low pass filter, high resolution ADC, an encoder and additional hardware. Therefore, the proposed axis-transformation method is expected to contribute to a low cost fault diagnosis system in inverter-fed motor drives without the need for any additional hardware. In order to confirm the validity of the developed algorithms, various experiments for rotor faults are tested and the line current spectrum of each faulty situation, using the Park transformation, is compared with the results obtained from the FFT(Fast Fourier Transform).