-This paper proposes a new finite control set-model predictive control (FCS-MPC) method for induction motors. In the method, the reference state that satisfies the given torque and rotor flux requirements is derived. Cost indices for the FCS-MPC are defined using the state tracking error, and a linear matrix inequality is formulated to obtain a proper weighting matrix for the state tracking error. The on-line procedure of the proposed FCS-MPC comprises of two steps: select the output voltage vector of the two level inverter minimizing the cost index and compute the optimal modulation factor of the minimizing output voltage vector in order to reduce the state tracking error and torque ripple. The steady state tracking error is removed by using an integrator to adjust the reference state. The simulation and experimental results demonstrated that the proposed FCS-MPC shows good torque, rotor flux control performances at different rotating speeds.