We present an efficient FPGA based implementation of a dynamic simulation framework for Direct Torque Control (DTC) of induction motors. The merit of the proposed DTC emulation framework lies in that it is completely implemented within an FPGA, and therefore can be easily utilized for exploratory system optimizations. The high performance and low area foot-print of the proposed framework implemented on a Virtex-5 FPGA is the result of several innovative design techniques based on hardware time-multiplexing and the utilization of built-in dedicated floating point IP cores. Our experimental results demonstrate that when FPGAs are utilized as computational cores, the DTC dynamic simulation speed can be improved by almost an order of magnitude compared to a software implementation run in Matlab on a personal computer.