This master's thesis is divided into two parts. The first part concerns the development of a simulation model of a current controller and a physical drive unit, both implemented in Simulink with the use of legacy code and regulated with field oriented control. The second part concerns the development of a dead-time compensation algorithm. The dead-time is a small delay added to the pulse width modulation signal to diminish the risk of a short circuit in the power electronics. The dead-time causes a voltage distortion, resulting in distorted phase currents, a lower bandwidth and ultimately a decreased machine accuracy. The new simulation environment was able to simulate a real life scenario with promising results. Hence, it could be used to evaluate the dead-time compensation algorithms. Three different dead-time compensation algorithms were implemented and they all showed an increased smoothness of the phase currents as well as an increased controller bandwidth. Both these features are desirable outcomes and all three algorithms show potential to improve accuracy when implemented in a real system.