<p>Silicon carbide (SiC) power devices have the potential to transform conversion systems of power electronics. However, conventional packaging and integration technologies — originally developed for silicon power devices — cannot fully address three key challenges in SiC applications: material limitations for high-temperature and high-voltage operation, electromagnetic interactions from high-speed switching and increased heat flux density from smaller die areas compared with silicon devices. In this Review, we outline how the material-level advantages of SiC translate into device-level and system-level benefits and examine solutions to the above three challenges. We review emerging packaging materials for high-temperature and high-voltage applications, packaging technologies that address electromagnetic interactions and thermal management and electro-thermal co-design strategies that jointly optimize electrical and thermal performance. Looking ahead, we set out two development trends: cost-sensitive applications that prioritize miniaturized modular units and performance-driven applications that leverage high-temperature and high-voltage capabilities for system miniaturization.</p>