Abstract--Power electronic converter-fed high performance AC drives belong to high-tech industry and are one of main factors for energy saving and productivity growth. This paper reviews present state and trends in development of key parts of controlled induction motor drive systems: converter topologies, modulation methods, as well as control and estimation techniques. Following topologies are described: Two-and Multi-level Voltage Source Converters, Current Source Converters and Direct Converters. Among the modulation techniques are briefly presented: conventional bipolar and unipolar PWM, space vector modulation (SVM) with extension for multilevel converters, harmonic control techniques, variable frequency modulation (hysteresis, nearest level, and model predictive techniques). About the control strategies, the generic torque control methods are described in two groups: linear and nonlinear controllers. In linear group are presented field oriented control (FOC), direct torque control (DTC) with voltage SVM, and DTC with flux vector modulation (DTC-FVM). The group of nonlinear control include: classical switching table based hysteresis DTC, direct self control (DSC) and predictive DTC scheme. Also, selected simple flux vector observers/estimators are discussed.