In this study, the tuning of the rotor time constant (T r) parameter of the induction motor (IM) drive by introducing the minimum order linear recursive least square (RLS) estimator is presented. The proposed RLS estimator can be excited using the pulse train of the flux reference as the test signal or using any other variation of the flux reference resulted from a number of optimisation techniques. The RLS is designed for traction drives with the encoder and utilises the measured stator currents. The recursive implementation of the proposed algorithm is suitable for the robust online T r estimation at different modes of operation, including the free-shaft and regular loading condition. The performances and practical aspects of the proposed algorithm are validated through the variety of experimental results on the digitally controlled traction IM drive. Nomenclature v sd , v sq stator voltage components in the rotating synchronous dq reference frame i sd , i sq stator current components in the rotating synchronous dq reference frame ψ rd , ψ rq rotor flux components in the rotating synchronous dq reference frame R s stator resistance L m mutual (magnetisingΨ inductance