This paper presents a new control algorithm development approach for induction machines by using model-based design and a systematically built model architecture implemented in MATLAB/Simulink. The model architecture follows a three-layer structure, and it is developed according to the principle of functional decomposition and the needs of reusability and expandability. The first model layer consists of elementary model and algorithm components, the second contains a machine simulation model and a field-oriented control (FOC) algorithm, built upon the first layer’s components, and the third realises the executable models by connecting the models and algorithms defined in the second layer. Furthermore, rapid control prototyping (RCP) is discussed as an experimental validation method, and an experimental setup with RCP is also introduced. The application of the presented methods is demonstrated by simulations as well as by experiments, and by using a control algorithm based on FOC as an example.