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This paper introduces a promising approach for developing an integrated traction motor drive based on the Integrated Modular Motor Drive (IMMD) concept. The IMMD concept strives to meet aggressive power density and performance targets by modularizing both the machine and power electronics and then integrating them into a single combined machine-plus-drive structure. Physical integration of the power electronics inside the machine makes it highly desirable to increase the power electronics operating temperature including higher power semiconductor junction temperatures and improved device packaging. Recent progress towards implementing the IMMD concept in an integrated traction motor drive is summarized in this paper. Several candidate permanent magnet (PM) machine configurations with different numbers of phases between 3 and 6 are analyzed to compare their performance characteristics and key application features.