Increasing power density in power electronics is driving a need for improved packaging methods for co-optimized high frequency performance, thermal dissipation and reliable operation, especially at high temperatures. Silicon Carbide (SiC) devices offer great opportunity as wide bandgap semiconductor devices, which maintain stability over wide temperature ranges, especially when compared to Silicon (Si) based devices. A novel flip-chip packaging technique for SiC power devices was developed at the University of Arkansas. This new package re-orients a bare die from a lateral device to a vertical device by utilizing a copper connector that routes the drain connection to the top side of the die. This study involves an investigation of achieving a co-optimized packaging configuration for thermomechanical reliability and low parasitic inductance. By orienting this SiC switch vertically, the unique 3D drain connector dramatically reduces the ringing at aggressive switching speeds used in power electronics when compared to Commercial Off The Shelf (COTS) devices. However, the design of this drain connector holds importance for high temperature operation, interconnect reliability as well as manufacturability. Effects of the packaging design, including materials, layout and solder pitch size were investigated from a thermal cycling reliability aspect. Electrical performance, such as parasitic inductances of the device, was also investigated using Finite Element Analysis (FEA) simulation. Several drain connector architectures were evaluated for their fatigue life capability of solder interconnects under thermal cycling (according to Darveaux's model) in conjunction with the parasitic inductance using FEA simulation. Based on the simulation results, an optimized architecture was selected and fabricated for prototype demonstration, and the electrical performance under double pulse test compared with state of the art devices demonstrated improvement in switching performance by reducing overshoot of voltage across the grain-source by 36% and 77% reduction of the drain current ringing during the turn-off event while eliminating voltage overshoot during turn-on event for the testing conditions.