Modern induction motor (IM) drives with a higher degree of safety should be equipped with fault-tolerant control (FTC) solutions. Current sensor (CS) failures constitute a serious problem in systems using vector control strategies for IMs because these methods require state variable reconstruction, which is usually based on the IM mathematical model and stator current measurement. This article presents an analysis of the operation of the direct torque control (DTC) for IM drive with stator current reconstruction after CSs damage. These reconstructed currents are used for the stator flux and electromagnetic torque estimation in the DTC with space-vector-modulation (SVM) drive. In this research complete damage to both stator CSs is assumed, and the stator current vector components in the postfault mode are reconstructed based on the DC link voltage of the voltage source inverter (VSI) and angular rotor speed measurements using the so-called virtual current sensor (VCS), based on the IM mathematical model. Numerous simulation and experimental tests results illustrate the behavior of the drive system in different operating conditions. The correctness of the stator current reconstruction is also analyzed taking into account motor parameter uncertainties, especially stator and rotor resistances, which usually are the main parameters that determine the proper operation of the stator flux and torque estimation in the DTC control structure.