Modeling and fault diagnosis of induction motor are main objective of this paper. This paper focused on the motor current signature analysis (MCSA) which utilizes the results of spectral analysis of the stator current. FFT is used for spectrum analysis and frequency of stator current observed for healthy and faulty induction motor. With the help of Matlab Simulink, KQJJ-IMFD model is developed for fault diagnosis of induction motor using FFT. KQJJ-IMFD model is new, simple, and understandable and detects various faults. In this paper various induction motor faults like voltage unbalance, rotor fault, and stator fault are simulated and detected with the help of current spectrum through FFT analysis on the stator current.