A multiple indicator based fault detection and isolation (FDI) is proposed in this paper for inter-turn fault in induction machines. The key step is the derivation of two indicators from the sequence component model of the induction machine. One main challenge in inter-turn fault isolation is discriminating with voltage imbalance, which invariably exists in the system. The identification of the inter-turn fault and information on voltage imbalance condition can be obtained by employing the proposed technique. Different types of voltage imbalances have been examined to show the robustness of the proposed approach. The method is also insular to load variations which may occur in the real conditions.