A pod is a propeller propulsion device installed externally to the ship's hull. The pod system comprises a short propulsion shaft, on which the propulsion electric motor is mounted. In most cases, propulsion is achieved by means of fixed pitch propellers powered by an AC synchronous motor (conventional, permanent magnet) or asynchronous electric motor, fitted inside the pod. Amongst the highest failure indices are those of main electric motor parts, such as the stator windings and core, the rotor windings and the slip ring electric connectors. These high failure rates are attributed mainly to the high temperature development in windings, leading to excessive overheating stresses, indicating that the motors have not been properly selected according to the stressful conditions they are subject to operate in. This paper deals with the design procedure of a surface mounted permanent magnet synchronous motor for application as a podded main propulsion motor. Specifically, it is an Azipod system that is an outboard marine propulsion unit, in which the engine is out of the hull, is rotatable around itself and the shaft is directly connected to the propeller.