-This paper proposes the dead time effect compensation algorithm using proportional resonant controller in pulse width modulation inverter of motor drive. To avoid a short circuit in the dc link, the dead time of the switch device is surely required. However, the dead time effect causes the phase current distortions, torque pulsations, and degradations of control performance. To solve these problems, the output current including ripple components on the synchronous reference frame and stationary reference frame are analyzed in detail. As a results, the distorted synchronous d-and q-axis currents contain the 6th, 12th, and the higher harmonic components due to the influence of dead time effect. In this paper, a new dead time effect compensation algorithm using proportional resonant controller is also proposed to reduce the output current harmonics due to the dead time and nonlinear characteristics of the switching devices. The proposed compensation algorithm does not require any additional hardware and the offline experimental measurements. The experimental results are presented to demonstrate the effectiveness of the proposed dead time effect compensation algorithm.