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In this paper, a new motor integrated permanent magnet gear (MIPMG) is discussed. The focus is on eddy current loss analysis associated to permanent magnets (PMs). A convenient model of MIPMG is provided based on 2-D field-motion coupled time-stepping finite element method for transient eddy current analysis. The model takes the eddy current effect of PMs into account in determination of the magnetic field in the air-gap and in the magnet regions. The eddy current losses generated in the magnets are properly interpreted. Design improvements for reducing the eddy current losses are suggested. The proposed model and the results presented in this paper will give useful guidelines for a reliable design and design optimization of the MIPMG.