AbstractRecently, the development trend of large capacity generator has gradually shifted from electrical excitation generator to permanent magnet generator (PMG). As a result, the large capacity high‐speed permanent magnet generator (HSPMG) with high power density and high efficiency have received widespread attention. This paper aims to analyse the loss optimization of novel large capacity HSPMG under multi‐operating conditions. In terms of the parameter requirements, a 2.5 MW and 7000 rpm HSPMG is designed. To verify the accuracy of simulation model and the rationality of generator design, the output characteristics of large capacity HSPMG which has been combined with prototype experimental data are calculated under both no‐load and load conditions. Based on the load power characteristics of large capacity HSPMG, the optimization range of the magnetization angle under multi‐operating conditions is explored. By analysing the no‐load back electromotive force (EMF) and loss characteristics of large capacity HSPMG, the optimal magnetization angle that corresponds to the minimum loss under three conditions is obtained. The correctness of the analysis and optimization method is verified by comparing the loss distribution and electromagnetic results before and after the optimization. The research results provide a reference for the multi‐operating characteristics analysis and loss optimization of large capacity HSPMG.