This thesis investigated the heat transfer of internally oil cooled rotors in permanent magnet electric machines which are, among other things, used in hybrid vehicles or zero emission vehicles. The magnets become sensitive and can be demagnetized at high working temperatures, hence the need of cooling. The scope of this work included CFD simulations in STAR-CCM+. Three different 3D multiphase models simulating the oil propagation in the rotor were performed. A Lagrangian multiphase model combined with a fluid film model was the most suitable model for simulating the spray of the oil and the film thickness along the inner rotor wall. It was noticed that periodic boundaries caused problems for the fluid film model, therefore a complete geometry was preferred over a truncated model. The 3D solutions provided thicker film thicknesses than the analytical solutions from the fluid film thickness theory. The maximum analytical thickness was of the same order of magnitude as the surface average film thickness provided by the multiphase models. This thickness was assumed to be constant when used as the base for the fluid region in the 2D one-phase models.The study showed that aluminum was the most suitable rotor material due to its high conductive capacity, which provided a more even distribution of the temperature in the solid and hence resulted in lower overall temperatures. The cooling power increased linearly with the volumetric flow rate, however the heat transfer coefficient decreased for the higher flow rates. A volumetric flow rate of 10dl/min was recommended. A 2D model was compared to a preliminary experiment and showed that these were not correlated. The conclusion was that more experiments and simulations are needed in order to confirm the validity of the 2D model.