Abstract: In this study, an adaptive sliding mode speed controller is Developed for Direct torque Control (DTC) of induction motor drive in accordance with sector alteration strategy. In basic DTC system, the applied voltage vectors are not active during switching sector transition and stator flux drooping occurs at every sector transition. The original sector division is altered slightly to overcome this flux drooping. The Sliding Mode Controller (SMC) developed in this research incorporates adaptive switching gain based on fuzzy logic. The control law of adaptive sliding gain SMC considers the sector alteration in the DTC drive system also. The performance improvement of the developed sector alteration strategy and fuzzy SMC for DTC are verified using performance indices.