Heat transfer and flow characteristics in manual transaxle (MT) are not clear. The measurement of the heat flux and the heat generations and the flow visualization were conducted for quantitative analysis of the heat transfer phenomena in the MT. A simulating technique for the lubricant temperature was developed with these experimental data and the prediction accuracy was within 3degC under the various operating conditions. The simulation was verified to be useful for estimating the lubricant temperature reduction by the lubricant volume reduction, air flow improvement around MT, etc. 7 refs., 8 figs.