This paper demonstrates light-load instability in a 100-kW open-loop induction motor drive on account of inverter deadtime. An improved small-signal model of an inverter-fed induction motor is proposed. This improved model is derived by linearizing the nonlinear dynamic equations of the motor, which include the inverter deadtime effect. Stability analysis is carried out on the 100-kW 415-V three-phase induction motor considering no load. The analysis brings out the region of instability of this motor drive on the voltage versus frequency (V-f) plane. This region of light-load instability is found to expand with increase in inverter deadtime. Subharmonic oscillations of significant amplitude are observed in the steady-state simulated and measured current waveforms, at numerous operating points in the unstable region predicted, confirming the validity of the stability analysis. Furthermore, simulation and experimental results demonstrate that the proposed model is more accurate than an existing small-signal model in predicting the region of instability.