Isolated phase bus(IPS) has a special structure for carrying large current generated by a generator to a main transformer. In the analysis of IPB, the understanding of the magnetic field distribution generated by large current is important. Especially, while the bus conductor current is flowing, almost same amount of current as bus conductor current is induced in the enclosures under the influence of time varying magnetic field, and therefore the large electric loss and the deterioration of insulating capability might occur due to Joule heating effect. Hence for the optimal design of IPB satisfying the condition to minimize the loss, the accurate analysis of magnetic field distribution and the eddy current characteristics of three phase isolated phase bus have been investigated. In the analysis of time varying magnetic field, instead of finite difference method(FDM) which is generally used, finite element method with phasor concept is investigated under the assumption that the bus current is purely sinusoidal. The characteristics is studied along the phase angle by comparing the effect of eddy current on the magnetic field distribution with the case that eddy current is not considered, and also the effect of material, thickness and radius of enclosure on the eddy current distribution is discussed.