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This paper presents an on-line estimation algorithm for parameters and states estimation of an induction motor. The algorithm is based on the measurements of the stator voltages, currents and rotor speed, and uses Extended Kalman Filtering (EKF) technique. Altough the computation of the stator currents is not always needed in practice, we include these variables to the state vector for completeness of the algorithm and to check the results. A squirrel-cage induction motor is fed from sinusoidal and six-steps sources at different times in order to observe the performance of the proposed estimator for different operation conditions. Estimation results which used experimental data showed that the proposed algorithm is capable of estimating the states and parameters of induction motors.