This paper presents modelling and simulation of the inter-turn short circuit fault in stator winding of a three-phase induction motor. The modeling of the induction motor with the inter-turn short circuit fault was efficiently implemented with developed MATLAB software. The investigation results were obtained from test setup of two 0.37 kW and 2.2 kW, 380/220 V squirrel-cage induction motors. The simulation results of the induction motor model were in good agreement with experimental results in the laboratory. The generated fault signals were used to train an artificial neural network (ANN) for inter-turn short circuit fault detection. From the experimental results, the ANN can detect the faults with up to 96 % accuracy. Based on the proposed model, various applications can be developed for fault monitoring and fault detection of induction motors.