A detailed magnetic reluctance-based computational model of an induction machine, into which a traditional rotor-flux-orientated vector control scheme has been grafted, is used to examine the influence of saturation of both main and leakage flux paths upon vector-controlled drive performance. Individual machine teeth, windings, and conductors are incorporated, as is pseudo-3-D modeling of skew. The cross-saturation effect is therefore determined from the basic dimensional and winding design data of the machine. Effective compensation methods can then be derived for practical implementation. Direct rotor flux orientation and magnitude control is used to ensure that inaccuracies in a machine-parameter-based vector control scheme are not reflected in the results for cross saturation. Results for a 15-kW four-pole induction motor with rotor skewed one stator slot pitch show that skew leakage flux is predominantly responsible for cross saturation. The skew leakage flux is shown to heavily saturate one end of the machine and to reduce the air gap flux density at the other. At 200% rated load current, this equates to an 11% reduction in direct axis flux if [i.sub.sd] is kept constant. To compensate for this reduction, a 27% increase in [i.sub.sd] would be required. Index Terms---Cross coupling, induction machines, skew, vector control.