Power loss of internal gear drives was measured using five different lubricating oils and a power circulating-type internal gear testing machine. The method to measure power loss is based on the oil temperature rise due to the friction loss in the gear drive. The power loss was separated into the gear friction loss and the oil churning loss. Effects of gear torque, gear speed, oil temperature and oil type on the friction loss of internal gear drives were discussed. An empirical formula for the oil churning loss was obtained from experimental data, and effects of oil temperature, kinematic viscosity of lubricating oil and gear speed on the churning loss were revealed.