Wide use of induction motor drives makes the problems related to induction motors very topical. One of such problems is the maximal utilization of torque and velocity of induction motors. In this regard the use and accurate adjustment of rotor magnetic flux observers may be helpful. The technique of observer adjustment is subject of special interest. This technique can be regarded as optimal if it ensures constant acceleration that, in turn, corresponds to constant magnitude of active and magnetizing components of stator current. In contrast, nonoptimal tuning of the magnetic flux observer creates a transient response caused by variation of magnetic and active components of the stator current resulting in changing acceleration of the motor. However, the parameters of non-optimal process can be used for fine tuning of the observer which considers the variation of the time constants obtained analyzing the drive's magnetic circuit saturation. It is possible to conclude that implementation of fine adjustment of rotor magnetic flux observer is of critical importance for induction motor torque and velocity maximum utilization.