This paper presents a new method to compensate the nonlinearities for matrix converter drives. The nonlinearities of matrix converter drives such as commutation delay, turn-on and turn-off time of the switching devices, and on-state switching device voltage drop is corrected by a new matrix converter model using the direction of current. The proposed method does not need any additional hardware or complicated software and it is easy to realize by applying the algorithm to the conventional vector control. The proposed compensation method is applied for high-performance induction motor drives using a 3-kW matrix converter system without a speed sensor. Experimental results show the proposed method provides good compensating characteristics.