This paper presents a time-varying sinusoidal disturbance compensation method (based on an adaptive estimation scheme) for induction motor drives fed by a matrix converter. In previous disturbance accommodation methods, sinusoidal disturbances with unknown time-invariant frequencies have been considered. However, in the new method proposed here, disturbances with unknown time-varying frequencies are considered. The disturbances can be estimated by using a disturbance accommodating observer, and an additional control input is added to the induction machine drive. The stability analysis is carried out considering the disturbance estimation error and simulation results are shown to illustrate the performance of the proposed solution.