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This paper presents a loss-model-based controller for an induction motor drive. Among the loss minimization algorithms (LMA) for an induction motor, a loss-model-based approach has the advantages of fast response and high accuracy. However, the performance of the loss-model controller (LMC) depends on the accuracy of the modeling of the motor drive and losses. In the development of the loss model, there is always a tradeoff between accuracy and complexity. This paper presents a new LMC to determine an optimum flux level for the efficiency optimization of the hybrid field oriented and direct torque controlled induction motor drive. The suggested LMC is simple, but leakage inductances are not omitted. The effectiveness of the proposed scheme is demonstrated through simulation results.