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When an induction motor is driven under light loads, the efficiency can be substantially improved by reducing the air-gap flux of the motor. The air-gap flux can be indirectly controlled by adjusting the stator current and slip frequency in the case of a current source inverter induction motor drive system. The relationship between the stator current and the slip frequency for an optimal efficiency control is derived, and the control loop is suggested. By this method, ten percent or more improvement in the efficiency is obtained at a quarter of the full load. Generally, the reduced air-gap flux may result in undesirable dynamic responses. The small signal analysis is used in order to estimate the transient characteristics. The experimental results indicate a stable operation and a good dynamic response.