This study investigates the impact of temperature variations on the torque capacity of shrink-fit junctions in water-jacketed permanent magnet synchronous motors. Focusing on both baseline and improved designs; torque capacities were evaluated across a temperature range from −40 °C to 120 °C under different material conditions: Least material condition, nominal, and maximum material condition. The baseline design exhibited torque capacities from 7648 Nm to 9032 Nm at −40 °C, decreasing significantly to 549 Nm to 1533 Nm at 120 °C. The improved design showed enhanced performance, with torque capacities ranging from 8055 Nm to 9247 Nm at −40 °C and from 842 Nm to 1618 Nm at 120 °C. The maximum improvement was observed at 120 °C for least material conditions, with a 55.4% increase, and the minimum improvement at −40 °C for maximum material conditions, with a 2.4% increase. Our findings demonstrate a significant increase in torque capacity by up to 20% under varied thermal conditions. These results underscore the effectiveness of design modifications in enhancing thermal stability and torque capacity, making the improved design a more reliable choice for high-performance applications subject to significant thermal fluctuations. This research highlights the critical role of material selection, thermal management, and precise design adjustments in optimizing the performance and reliability of permanent magnet synchronous motors.