We study a quantum impurity possessing both translational and internal rotational degrees of freedom interacting with a bosonic bath. Such a system corresponds to a 'rotating polaron', which can be used to model, e.g., a rotating molecule immersed in an ultracold Bose gas or superfluid Helium. We derive the Hamiltonian of the rotating polaron and study its spectrum in the weak-and strong-coupling regimes using a combination of variational, diagrammatic, and mean-field approaches. We reveal how the coupling between linear and angular momenta affects stable quasiparticle states, and demonstrate that internal rotation leads to an enhanced self-localization in the translational degrees of freedom.