A motor drive system output filter includes fault detection. A variable frequency drive (VFD) drives a three phase AC induction motor. A filter circuit is connected between the VFD and the AC induction motor. The filter circuit comprises a filter for each phase. Each filter comprises an inductor and a damping resistor connected in series with a blocking capacitor across the inductor. A plurality of detection circuits are provided, one for each phase. Each detection circuit is connected to the capacitor of the associated phase for detecting capacitor voltage to indicate a resistor fault condition.