In this paper a PWM-fuzzy direct torque controller for induction machines is proposed, with a current limiting function during start-up or for changes in the flux-linkage reference. The use of PWM in the controller provides a constant switching frequency, and provides additional degrees of freedom to regulate the stator current, stator flux-linkage build-up and torque production. Also, these additional degrees of freedom provide smooth state variables, and a reduction in the torque ripple. The proposed scheme is verified by simulations and by experimental test