(Abstract) This paper has developed novel permanent magnet synchronous motors (PMSMs) made of soft magnetic composite (SMC) material. They have not only the 3-D magnetic flux but also the hollow of the stator teeth, which can give the reduction of copper loss and the reduction of motor volume. It is shown that the transient performance of the developed PMSMs made of SMC core is not good compared with those made of laminated core. However, it is clarified that the efficiency can be improved by using the SMC core instead of the conventional laminated core, and by introducing the hollow for the winding, namely, the overhang at the teeth tip. Moreover, the part which has high iron loss is clarified by the 3-D finite element analysis.