New hybrid model for efficiency optimization of induction motor drives (IMD) is presented in this paper. It combines two strategies for efficiency optimization: loss model control and search control. Search control technique is used in a steady state of drive and loss model during transient processes. As a result, power and energy losses are reduced, especially when load torque is significant less related to its rated value. Also, this hybrid method gives fast convergence to operating point of minimal power losses and shows negligible sensitivity to motor parameter changes regarding other published optimization strategies. This model is implemented in vector control induction motor drive. Simulations and experimental tests are performed. Results are presented in this paper.