Abstarct: High temperature in machines cause extreme damages for many reasons e.g. flux of the rare-earth permanent magnet reduces with respect to temperature rises or machine life is decrease by increasing the temperature of the winding insulation. Thermal analysis and also cooling system are very important in electric machine manufacturing. While most research have been done in the field of thermal analysis for radial flux machines, the axial flux machines especially AFPM machines received little attention. Accurate thermal analysis of AFPM machines is very effective in optimizing design. In this thesis, axial flux permanent magnet machines and various topologies of them are briefly introduced. Then, baxsed on design information of a specific topology of AFPM machines, the losses have been calculated with analytical method and finite element analysis and results of these two methods are compared. Finally, due to high temperature of studied machine in steady state, suitable cooling system is designed for this machine and the temperature after cooling is presented by using finite element analysis.