A method of detecting a phase winding fault in a multi-phase electric machine is executable via a motor controller, and includes measuring feedback signals of the machine, including each phase current, and generating reference phase voltages for each phase. The method includes calculating a predetermined voltage value using the feedback signals and reference phase voltages, and comparing the voltage value to a corresponding threshold to determine the fault. A control action is executed when the voltage value exceeds the corresponding threshold. The voltage value is one or more of: a ratio of a normalized negative sequence voltage to a modulation index, an RMS voltage for each phase, and total harmonic distortion of each phase current. An apparatus detects the fault, and includes a motor controller and an algorithm as set forth above. The apparatus may include a voltage inverter for generating a multi-phase alternating current output for powering the machine.