This paper deals with the synthesis of fuzzy controller applied to the induction motor with a guaranteed model reference tracking performance. First, the Takagi-Sugeno (T-S) fuzzy model is used to approximate the nonlinear system in the synchronous d-q frame rotating with field-oriented control strategy. Then, a fuzzy state feedback controller is designed to reduce the tracking error by minimizing the disturbance level. The proposed controller is based on a T-S reference model in which the desired trajectory has been specified. The inaccessible rotor flux is estimated by a T-S fuzzy observer. The developed approach for the controller design is based on the synthesis of an augmented fuzzy model which regroups the model of induction machine, fuzzy observer, and reference model. The gains of the observer and controller are obtained by solving a set of linear matrix inequalities (LMIs). Finally, simulation and experimental results are given to show the performance of the observer-based tracking controller. This paper deals with the synthesis of fuzzy controller applied to the induction motor with a guaranteed model reference tracking performance. First, the Takagi-Sugeno (TS) fuzzy model is used to approximate the nonlinear system in the synchronous dq frame rotating with field-oriented control strategy. Then, a fuzzy state feedback controller is designed to reduce the tracking error by minimizing the disturbance level. The proposed controller is based on a TS reference model in which the desired trajectory has been specified. TS fuzzy observer. The developed approach for the controller design is based on the synthesis of an augmented fuzzy model which regroups the model of induction machine, fuzzy observer, and reference model. The gains of the observer and controller are obtained by solving a set of Finally, the simulation and the experimental results are to show the performance of the observer-based tra cking controller.