A method and a parameter estimation system are provided for controlling an electrical machine, (e.g., an induction motor), powered by a drive unit. The method and the parameter estimation system disclosed herein detect a travelling wave generated on a linking element disposed between a first connection point, which is at least one terminal of the electrical machine, and a second connection point, which is at least one terminal of the drive unit. Further, the method and the parameter estimation system disclosed herein obtain at least one of a plurality of wave characteristics associated with the travelling wave, (e.g., an amplitude, a width, a frequency, a travel time of the travelling wave). Further, the method and the parameter estimation system disclosed herein determine one or more control parameters, (e.g., an operational torque and speed), of the electrical machine based on at least one of the wave characteristics.