In this paper, the system equation for the balanced two-phase induction motor is derived and the characteristics for speed control is also analyzed in the region of constant torque and constant power. The modified vector control theory is applied to two-phase motor drive system. The speed of two-phase motor drive can be controlled precisely by the modified indirect vector control theory. The modified vector control theory is simpler comparing to the conventional vector control because of the simpler axis transformation. The computer simulations and the experimental results presented to confirm the vector control for two-phase inverter fed two phase induction motor system.