Estimators presently used in connection with schemes such as field-oriented control are typically real-time simulations of machine equations without feedback of any corrective prediction error. Thus it is difficult to regulate the rotor flux to the commanded value. Therefore, the system performance can be degraded. In this thesis, the feedback approach based on the full-order state observer has been proposed. The d-axis rotor flux and speed were controlled by PI-action. To verify the proposed method, it was implemented on an induction motor system with CRPWM MOS inverter driver and MVME110-1 mono-board computer was used for generating the control commands. Experimental results show that the proposed method has a good performance at transient state as well as steady state for controlling the induction motor.