About 50 percent of the used total electric power in industry is consumed by induction motors. Induction motors with speed control capability, have an important role in small, medium and large industries and these motors are used not only heavy industries such as steel and rolling; but also, in very small machines and robots. However the reduction of efficiency in light loads is the major problem of the induction motors. Because such motors at rated speed and torque are at maximum efficiency; but at light load the efficiency is reduced. Since the reduction of losses and improving the efficiency are the factors of reducing the energy consumption and cost. Thus many of the recent researches have been devoted on offering appropriate methods for loss minimization. In order to improve the efficiency at load that is less than the rated load, motor flux must be less than the rated flux. It should be noted that the loads are usually variable. Thus, if a constant speed motor is loaded by a load that is less than rated load, then the efficiency will be decreased. In short, there is a specific amount of flux for any the given torque and speed, that results in loss reduction and improvement of efficiency in system. One of the objects of this thesis, is proposing an algorithm that minimize losses and improve steady state efficiency of the induction motor, according to “loss model controller” method. Since in dynamic performance, when the motor is loaded with a light load, if a heavy load is applied to it, the speed of motor is reduced extremely and this is why, in order to optimize efficiency, the motor works at reduced flux. Thus, it is not possible to produce large torque suddenly. Another object of the project is to propose a method for the dynamic torque response improvement in the DTC-SVM drive of induction motors with efficiency optimization. To achieve these goals, the amount of flux must be decreased at the condition of applying a light load, and at the condition of sudden increasing the load, the components of applied voltage to the motor must be determined and controlled so that the amount of enhancement of flux and production of torque at the transient and dynamic condition reach to maximum. Also, the requirements and constraints of voltage and current must be considered. The proposed algorithm in this thesis have provided these requirement. By applying this methods, the amount of reduction of motor speed is minimized. The proposed methods are simulated by using MATLAB/Simulink software. Keywords: DTC-SVM Drive, Loss Minimization, Efficiency Optimization, Maximum Torque, Induction Motor.