The induction motor is considered the workhorse of the industry as it is used in most of the engineering applications. It is essential to ensure a safe and reliable operation of the induction motor in every system. Among the various types of induction motor faults, stator winding insulation fault accounts for a high percentage of it. As such, being able to detect early stages of insulation faults within the equipment using the method proposed in this paper would prove to be useful in providing timely maintenance. The proposed method in this paper is the non-intrusive impedance extraction method for online stator winding fault detection of induction motor. By observing the health condition of the motor in relation with its impedance, early stages of faults can be detected and rectified. Hence, eliminating potential safety hazards, reducing motor downtime as well as lowering the cost of maintenance. Experimental results shown will prove the reliability and accuracy in which the method proposed would provide. At the same time, its installation and removal are less complicated as compared to other methods hence is cost and time efficient.