This paper describes a fault tolerant controller for high performance induction motor drive. The proposed approach aims to make the motor tolerant to both internal and external factors such as loading, temperature and sensor failure. To achieve this goal, a controller that switches itself between a control strategy designed for nominal operation and a robust control strategy designed for faulty conditions is developed. The switching function serves as the fault indicator as well. To compensate for sensor faults, a practical speed estimator and an open loop flux observer with online tuning of rotor resistance are proposed. Simulation experiments in terms of speed and flux responses show the effectiveness of the proposed approach