The invention provides systems and methods for cooling and lubrication of high power density electric machines with an enhanced fluid injection system. Multiple fluid flow passages may be provided within the electric machine, which may include a stator fluid flow pathway between the stator and the machine housing. The stator fluid flow pathway may comprise one or more passages which may allow a fluid to directly contact the stator and the rotor. A method for cooling the electric machine may include directing a fluid to flow through one or more passages between the stator and the housing, which may provide the opportunity to transfer heat from the stator and the rotor to the fluid, thereby cooling the stator and the rotor.