The paper presents the detailed modeling and simulation of Direct Torque Control (DTC) of induction machines supplied by matrix converters in MATLAB/SIMULINK. A special space vector modulation of matrix converter used in the paper allows the generation of space voltage vectors to meet both the requirements of DTC and those of unity input power factor performance. Therefore, it is possible to combine the advantages of matrix converters with the advantages of DTC scheme. The steady state and transient performances of the whole induction drive for different conditions are simulated and discussed.