This paper presents a novel method for detecting stator winding inter-turn short circuit fault in a three-phase induction motor by vibration signature analysis using non-electrical contact type microelectromechanical systems (MEMS) accelerometer. The present work detects inter-turn short circuit by vibration analysis in a three-phase induction motor running under different load conditions. Theoretical analysis of stator winding under inter-turn short circuit condition has been presented. Experimental investigations have been carried out to detect inter-turn short circuit fault by vibration signature analysis using a MEMS accelerometer with three-phase induction motor operating under different conditions. The spectral analysis of motor vibration has been carried out using radix-2 decimation in time fast Fourier transform algorithm. The appearance of particular characteristic frequency components in vibration spectrum indicates stator winding inter-turn short circuit faults. The experimental results are found to closely match with the theoretical values, indicating that MEMS accelerometers can be successfully employed for the detection of stator winding inter-turn short circuit fault in induction motors.