Abstract-In this paper, a model reference fuzzy adaptive system (MRFAS) control method using on-line self tuning fuzzy quantizing and scaling factors is applied to the sensorless vector controlled induction motor (IM) drive system with MRAS type speed estimator. In this method, a stator current model based MRFAS observer is presented to estimate the rotor speed and inverse rotor time constant and rotor flux is estimated using the MRAS CC estimator. A novel nonlinear adaptation mechanism is proposed in which the speed adaptation scheme and the other of inverse rotor time constant are executed by two-stage fuzzy logic controllers with self-tuned parameters based on the error and change of error measured between the actual current and the reference model output signal. Simulation results are presented to validate the effectiveness of the proposed method, showing stable system responses almost insensitive to large parameter variations.