In this study, a speed-sensored reduced-order extended Kalman filter (RO-EKF) based estimator is designed for direct vector control system of induction motors (IMs). The rotor resistance, stator resistance, and magnetizing inductance are simultaneously estimated by the designed estimator. The proposed estimator is tested by simulations for a wide speed range. The proposed estimation algorithm is known as the first RO-EKF algorithm in the literature which estimates the stator resistance, rotor resistance, and magnetizing inductance simultaneously. Figure A. Block schema of the direct vector controlled induction motor drive Purpose: The aim of this study is to introduce a direct vector control based high-performance IM driver which uses RO-EKF algorithm for state and parameter estimation. Theory and Methods: IMs have parameters which vary the operating conditions such as temperature, frequency, and voltage level. Thus variations of these parameters make control performances of IM difficult. To overcome these disadvantages, an RO-EKF estimating the stator resistance, rotor resistance, magnetizing inductance, and rotor flux in a wide speed range including very low/zero-speed and field-weakening zone is designed. Results: Simulation results show that the proposed estimation algorithm and thus the speedsensored direct vector control based induction motor drive utilizing the designed estimation algorithm are quite satisfactory. Conclusion: In this study, a new state and parameter estimator is presented for the IM drives using the speed-sensored RO-EKF algorithm. The proposed estimation algorithm is tested with simulations in a wide speed range with step and ramp changes of rotor resistance, stator resistance, magnetization inductance, and load torque. The simulation results verify that the proposed estimation algorithm and the speed-sensored DVC system using the proposed estimation algorithm are quite satisfactory.