In this paper, the transient state analysis of a Line-Start Permanent Magnet Synchronous Motor (LSPMSM) and the optimum design for high efficiency were studied. In the case of an LSPMSM, aluminum bars and permanent magnets are inserted in the rotor. Since it has aluminum bars, it can be directly started on-line without closed-loop control at the time of starting, like an induction motor. Furthermore, once driven, it rotates at a synchronous speed due to the permanent magnets in the steady state. Theoretically, since the rotor bars have no induced current, copper loss does not occur in the rotor bars. Further, because of the inserted permanent magnets, an LSPMSM has a higher power density than an induction motor with the same output power. However, since it is driven directly on-line, the transient state is longer than that of a synchronous motor driven by an inverter. Therefore, it is important to analyze the characteristics of the transient state depending on the rotor shape in the LSPMSM design. In this study, an LSPMSM that has the same outer diameter of a 7.5 kW IE3 efficiency class induction motor currently used for the industry was designed. The optimal design of the motor was designed using Finite-Element Analysis (FEA) and Design of Experiment (D.O.E). In the design process, the velocity ripple was minimized in the transient state, and the steady state was quickly reached. Finally, the efficiency of the motor satisfies the requirements of the IE4 efficiency class, an efficiency standard described in IEC 60034-30, which is an international standard.