This paper presents the development, the analysis and the implementation of a resolution-level vectorcontrolled wavelet-modulated (WM) inverter-fed interior permanent magnet (IPM) motor drive. The proposed controller is based on mapping the changes of the quadrature axis component i q of the line currents to a phase-shift angle θ, while maintaining the direct axis component i d constant. The phase-shift θ is introduced in the first derivative of the reference modulating signals in order to obtain a resolution-level controlled (RLC) WM inverter output voltages. The mapping of changes in i q changes is used to generate switching signals to the WM inverter to adjust its output voltages in response to changes in the load and/or the speed of the IPM motor. The proposed resolution-level vector-controlled WM inverter-fed IPM drive system is implemented in MATLAB/SIMULINK R for performance simulations. The simulation test results show a stable, fast and effective adjustment of the inverter output voltage in response to load and/or speed changes in the simulated IPM motor drive system. Furthermore, The complete drive incorporating the RLC vector controller is successfully implemented in real-time using a digital signal processor board dSPACE ds1102 for a laboratory 1-hp interior permanent magnet motor. This paper provides pertinent analytical tools for researchers and practicing engineers regarding the application of controlled WM inverters in IPM motor drives.