This thesis investigates temperature distribution and hence heat dissipation of buried power cables. Heat dissipation analysis of a simple practical application and the parameters that affect the heat dissipation are discussed. In analyzing temperature distribution in the surrounding medium , a computer program is developed which is based on gauss-seidel iteration technique. This method is applied to a sample test system and heat dissipation curves for several parameters are obtained. Also, current carrying capacities of various types of cables are determined using dissipated heat values.