This paper presents a design and implementation of flux vector (Field oriented) control of induction motor based on a 16-bit single chip microcontroller INTEL 80C196KC operating at 16 MHz clock frequency. This microcontroller is used as a main control element of high performance industrial induction motor drive system. The aim of using this microcontroller is to simplifying the intermediate analog stages. Consequently, reduce the system cost and the execution time in order to improve the drive performance. The hardware requirements for this control system are only the measuring circuits of the necessary signals such as the actual current and speed. The complete drive system consists, in addition to the microcontroller based hardware, of a small fractional HP induction motor and a three PWM inverter. The sequence pattern required to the PWM inverter driving signals is designed and implemented by the space vector modulator (SVM) technique. All the control algorithms of the input and output operations such as current, flux, and speed controller’s calculations in the addition to the space vector modulator SVM are software implemented and carried up by the microcontroller in order to fulfill the various application requirements.