Based on induction motor model considering core loss resistance that accounts for magnetic characteristic saturation, speed control approach is devised with Adaptive full order (AFO) speed observer. The induction motor model analysis is done deeply in stationary reference frame. The control approach incorporates a flux reference generator designed to meet optimal operational circumstances and a nonlinear speed controller. The machine state variables are involved in both the flux generation and spee d control rules. The proposed control strategy's performance is formally studied by simulation, and demonstrated through experiment. The technique exhibits fast convergence to the optimal flux level, reduces computational resource requirements, and enhances the accuracy of both torque production and loss minimization. It eliminates the excessive flux demands, when compared to open-loop steady-state values, which will necessitate greater current levels without justification, resulting in an increase in the power dissipated. This optimum flux level is used for minimizing induction motor losses for efficiency increment..