The authors analyze the influence in vector controlled induction machine caused by parameter variation and main flux saturation affects speed estimation of adaptive state observer. According to simulation of the modified scheme with saturated induction motor model, it is proved that when the vector control scheme operates in field weakening region, the main flux saturation will obviously influence precision of speed observer and bring great error of speed estimation. Thereby, the main flux saturation should be compensated to improve performance of the vector control system.