Abstract Thermal stress in IGBT power module can lead to sever thermal reliability problems such as module deformation, performance degradation and even permanent damage. So, it is important to develop innovative and efficient IGBT cooling technologies. In this paper, a novel thermal management system is developed for cooling IGBT power module. The module is integrated with a vapour chamber-based heat sink to reduce thermal resistance and improve temperature uniformity significantly. 3D FEM modelling is conducted to investigate the effect of vapour chamber on temperature distribution, thermal stress, energy strain dissipation density and lifetime under power cycle. The simulation results show that the proposed thermal management system is superior to traditional cooling solution regarding cooling capacity, thermal stress, creep and plastic strain energy dissipation and thermal fatigue life. The study of failure mechanism of solder layer under power cycling suggests that creep causes the main is damage in the power cycling and cracks induced by thermal loading can be expected to initiate at the edge.