A rotary electric machine includes a rotor, a stator, a substrate, a bus bar, a housing having a stator housing portion and a substrate housing portion, and a cover member. The substrate housing portion is located radially outside the stator housing portion. The housing has a connection hole connecting the stator housing portion and the substrate housing portion. The bus bar radially passes through the connection hole. The bus bar includes a coil connection portion electrically connected to the coil in the stator housing portion, and a substrate connection portion electrically connected to the substrate in the substrate housing portion. The bus bar is located on one side in the axial direction of the stator. The cover member has an opposing portion located on one side in the axial direction of the bus bar in the stator housing portion, and having an axial positioning portion for the bus bar.