According to the present invention, a rotary electric machine includes a rotor with a rotary shaft, a stator surrounding an outer periphery of the rotor, and a frame supporting the rotor and the stator. Further, the stator has an outer surface at least part of which is exposed to outside of the frame, and a plurality of protrusions and recesses are formed on the exposed part of the outer surface of the stator, so as to enhance dissipation of heat generated by operation of the rotary electric machine. According to a further implementation of the present invention, the rotor includes at least one fan that works to create air flow, and the protrusions and the recesses are so formed that the recesses make up air flow paths, along which the air flow created by the fan passes over the outer surface of the stator, thereby cooling the outer surface.