The main aim of this work is to emphasize on the development of a variable frequency drive that is able to control the speed of a single or three-phase induction motor with minor software and hardware modifications. The complete system consists of a three-phase rectifier, smoothing circuit, and a three-phase inverter. The merits of the proposed variable frequency drive for speed control of single and three-phase induction motor is verified by simulation in MATLAB/Simulink environment. In this paper, the parameter unit (PU) and external mode-based speed control of the three-phase induction motor is described. The speed control of the three-phase induction motor is achieved using Variable Frequency Drive (VFD). The basic parameter such as acceleration time, deceleration time, input terminal function assignment, three-speed, and fifteen-speed parameters are explained. The Simulink model design of VFD and the waveforms of speed, torque, stator current, line voltages with respect to time are shown.