This paper presents an application of GaN devices for the development of a low temperature current source inverter (CSI) meant for higher efficiency and power density. A detailed investigation about influence of layout parasitics onto switching speed, and device over voltages of a CSI is carried out. The paper optimizes the commutation power loop by having a “Y” shaped layout for CSI with the lowest ever inductance of 3.51 nH. The paper also discusses the converter design from thermal aspects and mechanical limits in the development phase. The design concept is validated with three phase experiments using GaN devices, by developing two different configurations of CSI, where design of power loop inductance has also been verified.