Electric drives for induction machines are of great importance because of the popularity of this machine type. To design, simulate and implement such drives, fast, reliable digital signal processors are needed. Recently Field Programmable Gate Array (FPGA) has been used in electric drive applications. This is mostly because of higher flexibility of hardware solutions compared to software solutions. In this thesis, FPGA-based simulation and implementation of direct torque control (DTC) of induction motors are studied. DTC is simulated on an FPGA as well as a personal computer. Results prove the FPGA-based simulation to be 12 times faster. Also an experimental setup of DTC is implemented using both FPGA and dSPACE. The FPGA-based design provides a potential sampling frequency of 800 kHz. This is a breakthrough knowing that a low ripple DTC is highly dependent on high sampling frequencies. Finally, a configurable torque/speed control system is designed and implemented on dSPACE.