In this paper, the Linear Exponential Quadratic Gaussian with Loop Transfer Recovery (LEQG/LTR) methodology is employed for the design of high performance induction motor servo systems. In addition, we design a speed sensorless induction motor vector controlled driver with both the extended Kalman filter and the LEQG/LTR algorithm. The experimental realization of an induction servo system is given. Compared with the traditional PI and LQG/LTR methods, it can be seen that the system output sensitivity for parameter variations and the rising time for larger command input of the proposed method can be significantly reduced.