The reliability assessment of electric machines plays a very critical role in today’s engineering world. The reliability assessment requires a good understanding of electric motors and their root causes. Electric machines mostly fail due to mechanical problems and bearing damage is the main source of this. The bearings can be damaged by mechanical, electrical, and thermal stresses. Among all stresses, the researcher should give special attention to the electrical one, which is bearing current and shaft voltage. This review paper introduces a comprehensive study of bearing current and shaft voltage for inverter-fed electric machines. This study aims to discuss several motor failure processes, as well as the sources and definitions of bearing current and shaft voltage. The different kinds of bearing currents are addressed and the parasitic capacitances, which are the key component to describe bearing current, are determined. Several measurement approaches of bearing current will be discussed. Furthermore, modeling of bearing current will be covered together with the machine’s parasitic capacitances. Moreover, the different bearing current mitigation techniques, as described in many papers, will be thoroughly addressed. The use of rewound multiphase machines for mitigation of bearing current will be proposed and compared to a three-phase machine. Finally, various pulse width modulation techniques of multiphase systems that reduce bearing current and shaft voltage will be investigated, and the findings described in the literature will be summarized for all techniques.