This paper presents a real-time implementation of an online protection technique for induction motor fault detection and diagnosis. The protection system utilizes a wavelet packet transform (WPT)-based algorithm for detecting and diagnosing various disturbances occurring in three-phase induction motors. The criterion for the detection is the comparison of the coefficients of the WPT of line currents using a mother wavelet at the second level of resolution with a threshold determined experimentally during the healthy condition of the motor. The algorithm is implemented in real-time using the Texas Instrument TMS320C31 32-b floating-point digital signal processor with the help of objectoriented programming. The proposed technique is tested on two three-phase induction motors. The online test results give a response signal at the instant or within one cycle of disturbance in all cases of investigated faults. In addition, the algorithm is also tested during no load and full load operating conditions of the motor.