Electric machines have broadly been used in many industries including the transportation industry. With the evolving trend of electrification in transportation, electric machines with higher power density and higher efficiency are demanded and, thus, more stringent thermal management requirements are needed for electrified vehicle applications. This study comprehensively presents various important aspects of thermal management in electric machines with the main focus on transportation applications. Design considerations, challenges, and methods for enhanced thermal management are discussed. Fundamental thermal properties of common materials are presented and sources of losses in various parts of machines are explained. Furthermore, typical cooling techniques and thermal analysis approaches for electric machines are reviewed in detail. This study will serve as a reference guideline for machine designers, who are interested in thermal management, and for thermal researchers working on electric machines.