This paper proposes a novel four-quadrant vector controlled induction motor (IM) adjustable speed drive (ASD) system based on a recently proposed matrix converter topology called quasi-Z-source direct matrix converter (QZSDMC). The QZSDMC is formed by cascading the quasi-Z-source impedance network and the conventional direct matrix converter (DMC). The QZSDMC can provide buck-boost operation with voltage transfer ratio controlled by controlling the shoot-through duty ratio and bidirectional operation capability. The control strategy, which is based on the indirect field oriented control algorithm, is able to control the motor speed from zero to the rated value under full load condition during motoring and regenerating operation modes. The operating principle of the proposed system is presented in detail. The simulation and the real-time implementation results, using dSPACE 1103 ControlDesk, validate the high performance of the proposed four-quadrants IM-ASD based on QZSDMC system. The proposed four-quadrant vector controlled IM-ASD system based on the QZSDMC topology overcomes the voltage gain limitation of the traditional DMC and achieves buck and boost condition in four-quadrant modes with reduced number of switches, therefore achieving low cost, high efficiency, and reliability, compared with back-to-back converter.