A power module assembly with low thermal resistance and enhanced heat dissipation to a cooling medium. The assembly includes a heat sink or spreader plate with passageways or openings for coolant that extend through the plate from a lower surface to an upper surface. A circuit substrate is provided and positioned on the spreader plate to cover the coolant passageways. The circuit substrate includes a bonding layer configured to extend about the periphery of each of the coolant passageways and is made up of a substantially nonporous material. The bonding layer may be solder material which bonds to the upper surface of the plate to provide a continuous seal around the upper edge of each opening in the plate. The assembly includes power modules mounted on the circuit substrate on a surface opposite the bonding layer. The power modules are positioned over or proximal to the coolant passageways.