An electro-hydraulic power unit is disclosed that includes a housing filled with hydraulic fluid. A hydraulic power unit is disposed within the housing, the power unit having a mechanical power shaft. Additionally, an electric machine is disposed within the housing adjacent to the hydraulic power unit, the electric machine having a rotor secured to the mechanical power shaft of the hydraulic power unit. Hydraulic fluid within the housing passes over the electric machine, thus cooling the electric machine and providing for improved efficiency and performance.