This paper presents a wavelet-fuzzy based controller for indirect field oriented control of three-phase induction motor drives. The discrete wavelet transform is used to decompose the error between the actual speed and the command speed of the induction motor drive into different frequency components. The transformed error coefficients along with the scaling gains are used for generating the control component of the motor. Self-tuning fuzzy logic is used for online tuning of the scaling gains of the controller. The proposed controller has the ability to meet the speed tracking requirements in the closed loop system. The complete indirect field oriented control scheme incorporating the proposed wavelet-fuzzy based controller is investigated theoretically and simulated under various dynamic operating conditions. The simulation results are compared with a conventional proportional integral controller and a fuzzy based controller. The speed control scheme incorporating the proposed controller is implemented in real time using a digital processor control board. Simulation and experimental results validate the effectiveness of the proposed controller.