Magnetic components have become one of the primary barriers to high power density converters, especially to current-source converters (CSCs). In CSCs, the inductors/transformers have a predominantly dc flux to store energy, which can be offset by standard permanent magnets (PMs). However, eddy currents in standard PMs induce significant losses and thermal stress for medium-frequency applications. This article proposes using laminated PMs to offset the dc flux while reducing eddy currents, leading to significant reductions in the size, cost, and losses of inductors/transformers. Furthermore, the laminated PMs’ optimal location, orientation, and distribution are investigated to generalize this approach for maximum benefits. Three-dimensional finite-element analysis simulation and hardware experiments are presented to validate the effectiveness of the proposed approach in a medium-frequency transformer (MFT) for CSCs. Compared with standard PMs, the proposed use of laminated PMs reduces aggregate core-plus-PM losses by 85% in experiments, and thus, relaxes the MFT thermal design. Finally, the proposed approach is experimentally validated in a <inline-formula xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink"><tex-math notation="LaTeX">$\text{40}\,\text{kVA}$</tex-math></inline-formula> flyback-type MFT for a soft-switching solid-state transformer. Compared to the traditional design without any PMs, the proposed design increases the saturation current by 46% while inducing only 5% more losses, leading to significant savings in magnetics cost and size.