A power module assembly (400) with low thermal resistance and enhanced heat dissipation to a cooling medium. The assembly includes a heat sink or spreader plate (410) with passageways or openings (414) for coolant that extend through the plate from a lower surface (411) to an upper surface (412). A circuit substrate (420) is provided and positioned on the spreader plate (410) to cover the coolant passageways. The circuit substrate (420) includes a bonding layer (422) configured to extend about the periphery of each of the coolant passageways and is made up of a substantially nonporous material. The bonding layer (422) may be solder material which bonds to the upper surface (412) of the plate to provide a continuous seal around the upper edge of each opening (414) in the plate. The assembly includes power modules (430) mounted on the circuit substrate (420) on a surface opposite the bonding layer (422). The power modules (430) are positioned over or proximal to the coolant passageways.