This paper describes the finite element (FE)-based design of a slotted tubular permanent magnet actuator (TPMA) used in railway vehicle active lateral secondary suspension that improves the actuator's thrust and lowers its cogging force under thermal and geometric constraints. To consider the electromagnetic and thermal fields and the complex interactions among the design variables, design was carried out in an electromagnet and thermal field environment using accurate and time-effective FE analysis. A six-slot prototype model was fabricated to estimate critical thermal parameters, which are difficult to compute without experiments. Three-dimensional FE analysis using the determined thermal parameters was adopted to calculate the precise thermal distribution of the TPMA and verify the forced air-cooling effect. A prototype TPMA with a quasi-Halbach array of permanent magnets and a moving magnet was manufactured through the FE-based design process; the dynamic, electromagnetic, and thermal characteristics of the prototype TPMA were validated experimentally.