This paper deals with the design and testing of an interior permanent-magnet (IPM) machine that exhibits advanced features. It adopts fractional-slot (FS) nonoverlapped coil windings that reduces the end winding length, i.e., the Joule losses and machine cost. As a consequence, higher rated current can be supplied so that higher torque density and higher efficiency in a wide operating region can be reached. The rotor saliency increases the performance in flux-weakening operating region and the fault-tolerance capability. In order to decrease the torque ripple, it is important to minimize the interaction between the magnetomotive force (MMF) harmonics due to the stator currents and the rotor anisotropy. To do that, the winding has been optimized so as to minimize the MMF harmonics, taking advantage from the higher degree of freedom of the four-layer winding. However, the so-called slot-harmonics cannot be minimized by rearranging the winding coils. Hence, the rotor geometry has been designed so as to minimize the impact of such slot-harmonics. A 12-slot 10-pole IPM FS machine has been designed and manufactured. The experimental tests confirm the expectations.