This paper presents an innovative way using the design of fault-tolerant control (FTC) systems for induction motor (IM). It will be shown how the nonlinear output regulation theory can be successfully adopted in order to design a regulator able to offset the effect of all possible faults which can occur in IM drives and, in doing so, also for faults tolerant control process. This regulator is designed by embedded the internal model fault. The proposed fault-tolerant controller for induction motors (IM) may be realized in presence of both rotor and stator electrical faults. Simulation tests confirm widely the feasibility and the effectiveness of the proposal FTC of IM based on the SMC.