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This paper investigates the effectiveness of direct oil cooling of a PMSM by modeling flows of coolant inside the machine using Computational Fluid Dynamics (CFD) software. Conjugated fluid-solid heat transfer modeling with anisotropic conductivity coefficients in solids and turbulent fluid flow was performed. The detailed flow modeling allows precise determination of possible cooling approaches and provides designers with the information required for selection of the optimal volumetric coolant flow. The CFD method is compared with a traditional LPTN approach.