This paper presents the transfer function modeling and stability analysis of two induction motors of same ratings and parameters connected in parallel. The induction motors are controlled by a single inverter and the entire drive system is modeled using transfer function in LabView. Further, the software is used to perform the stability analysis of the parallel connected induction motor drive under unbalanced load conditions. It is very simple compared with the methods discussed so far to study the performance of the drive under unbalanced load conditions. Control design and simulation toolkits are used to model the drive system and to study the stability analysis. Simulation is done for various operating conditions and the stability investigation is performed for different load conditions and difference in stator and rotor resistances among the two motors.