Power electronics modules are semiconductor components that are widely used in airplanes, trains, automobiles, and energy generation and conversion facilities. In particular, insulated gate bipolar transistors(IGBT) have been widely utilized in high power and fast switching applications for power management including power supplies, uninterruptible power systems, and AC/DC converters. In these days, IGBT are the predominant power semiconductors for high current applications in electrical and hybrid vehicles application. In these application environments, the physical conditions are often severe with strong electric currents, high voltage, high temperature, high humidity, and vibrations. Therefore, IGBT module packages involves a number of challenges for the design engineer in terms of reliability. Thermal and thermal-mechanical management are critical for power electronics modules. The failure mechanisms that limit the number of power cycles are caused by the coefficient of thermal expansion mismatch between the materials used in the IGBT modules. All interfaces in the module could be locations for potential failures. Therefore, a proper thermal design where the temperature does not exceed an allowable limit of the devices has been a key factor in developing IGBT modules. In this paper, we discussed the effects of various package materials on heat dissipation and thermal management, as well as recent technology of the new package materials.