Provided is a stator provided with a high withstand voltage insulating system operable at a high drive voltage without increasing the thickness of a slot insulating paper, and a rotary electric machine incorporating the stator. A stator of a rotary electric machine according to the present invention includes a stator core in which a plurality of slots is formed, a stator coil to be inserted into the slot, and an insulating paper to be inserted into the slot, and insulating the stator coil and the stator core, wherein the insulating paper includes a first insulating paper portion arranged adjacent to the stator core at an outside of an end surface in an axial direction of the slot and at least a second insulating paper portion arranged between the first insulating paper portion and the stator coil, and the insulating paper forms a resin reservoir portion in which an insulating resin is arranged, between the first insulating paper portion and the second insulating paper portion.