A sensor fault detection and isolation scheme(SFDIS) is adopted to improve the reliability of direct torque controlled induction motor drives and the experimental results are discussed. Major contributions include: experimental analysis of a few important sensor faults. design and implementation of the proposed SFDIS, and the fault tolerant control system(FTCS). Although the adopted SFDIS employs only one observer for residual generation, the system has the function of fault isolation that only multiple observer schemes can have. To verify the performance of the proposed scheme, the speed control system is designed for the 2.2kW direct torque controlled Induction motor. Hardware of the control system consists of a control board using TMS320OVC33 and a power stack using IPM. Experimental results for various type of sensor faults show the effectiveness of the SFDIS and the FTCS.