The aim of this work was to work out the mechanical stresses within transformer resulting from the extreme short-circuit currents. The forces and stresses set up in transformer windings as the result of exterior or interior short-circuits or of switching operations, are measured in detail. A variety of arrangements of windings in large power transformers are described. Points at which mostly high mechanical stresses take place in concentric windings are discussed in detail. Analytical and FEM calculations for individual short circuit forces, axial and radial have been discussed. The result was then compared with actual measurements on a prototype 20 MVA 132/11.5 kV power transformer [15]. Various failure mechanisms due to these forces have been discussed. Design parameters are also discussed, whose values determine the maximum stresses which may occur in any part of the transformer. Effects of irregularity in various parts and various properties of materials have been studied and the usage of appropriate material for withstanding the dynamic effects of SC is discussed. Effect of workmanship errors on short circuit withstand capability has also elucidated. Finally, a complete model is developed.