A vehicle powertrain component includes a thermal transfer surface that transfers thermal energy out of a powertrain component and a thermally active material disposed over the thermal transfer surface. The thermally active material includes a variable thermal conductivity and an actuator coupled to the thermally active material induces changes in the thermal conductivity of the thermally active material. A controller governs operation of the actuator to adjust the thermal conductivity of the thermally active material responsive to a vehicle operating condition to maintain the powertrain component within a predefined temperature range.