Inverter dead-time is known to make open-loop induction motor drives oscillatory, while operating at light-loads in particular. While dead-time compensation schemes exist, precise compensation of the same is often challenging as it involves factors such as device and driver delays and switching transition times, which are difficult to be quantified accurately. Hence, the effect of dead-time could be under or overcompensated. This paper presents a comprehensive analysis of the impact of such undercompensation and overcompensation on the stability of a 100-kW induction motor drive, along with experimental investigations of the same. The effects of undercompensation and overcompensation on the inverter output voltage are analyzed on a switching-cycle average basis. Further, small-signal models are proposed for an open-loop drive, when it is undercompensated and overcompensated. Stability analysis of the above motor drive is reported, which predicts oscillatory behavior with both under and overcompensation, over certain fundamental frequency ranges, respectively. Further, two different types of oscillatory behavior, characterized by different oscillating frequencies, are observed for the cases of under and overcompensation. The analyses are supported by simulations. Experimental investigations carried out also support the analyses and simulation results. © 1972-2012 IEEE.