This paper presents guidelines for determining the initial shape and specifications of a high-speed axial-flux permanent-magnet (AFPM) machine in a hybrid-electric propulsion system in two steps based on previous studies and product review results related to high-speed AFPMs. In the first step, three characteristics to be considered when designing AFPMs were classified as: electromagnetic, thermal, and mechanical. Then, the factors that should be considered in the design process to satisfy each characteristic were organized. In the second step, “the speed–output power” relationship was defined to predict the limits of applying AFPMs to high-speed applications, allowing an estimation of the limits of the speed range that can be used within the proposed output power.