This paper presents a design of Matrix converter using space vector modulation which is connected to an Induction motor. When the Induction motor is driven by a matrix converter using space vector modulation the torque pulsation is reduced and improves the speed of the motor. Switching losses of the converter is also reduced. Matrix converter does not require any DC link. Matrix converter has its unique feature is pure sinusoidal. Because of this feature harmonic losses are reduced. Thus the matrix converter improves overall performance of the motor. Matrix converter is a better alternative for PWM inverters. The simulation performance on matrix converter connected an induction motor using Matlab/simulink show good response of speed and torque. The matrix converter is superior to inverter drives because of its regeneration ability and four-quadrant operation. Therefore it meets the stringent energy efficiency and power quality.