This paper introduces a novel method for estimating the speed of an induction motor using a speed adaptive flux observer, which is based on adaptive control theory. The method aims to address the limitations of existing field-oriented control methods, particularly in low-speed regions, where the direct field-oriented control method with a flux estimator is not practical due to its sensitivity to voltage sensor offsets and stator resistance variations. The proposed observer uses a state observer that can allocate poles arbitrarily, making it suitable for direct field-oriented control even at low speeds. The effectiveness of the method is demonstrated through experiments, where the observer is implemented on a digital signal processor (DSP). The paper also discusses the influence of parameter variations on speed estimation and proposes a parameter update law to compensate for these variations. Experimental results show that the proposed method can accurately estimate the speed and maintain stable operation in various conditions, including forward-reverse operation and load step responses.This paper introduces a novel method for estimating the speed of an induction motor using a speed adaptive flux observer, which is based on adaptive control theory. The method aims to address the limitations of existing field-oriented control methods, particularly in low-speed regions, where the direct field-oriented control method with a flux estimator is not practical due to its sensitivity to voltage sensor offsets and stator resistance variations. The proposed observer uses a state observer that can allocate poles arbitrarily, making it suitable for direct field-oriented control even at low speeds. The effectiveness of the method is demonstrated through experiments, where the observer is implemented on a digital signal processor (DSP). The paper also discusses the influence of parameter variations on speed estimation and proposes a parameter update law to compensate for these variations. Experimental results show that the proposed method can accurately estimate the speed and maintain stable operation in various conditions, including forward-reverse operation and load step responses.