This paper presents the design, optimization, and prototyping of a transverse flux-type-switched reluctance generator (TFSRG) with an integrated rotor consisting of the main and permanent magnet (PM) auxiliary poles. In the initial model, an integrated rotor has a simple structure, consisting of one magnet core and a yoke bar. The yoke bar was radially laminated and inserted in the rotor yoke to minimize loss of the magnetic flux, which flows along the axial direction. We analyzed the cogging torque and back-EMF characteristics of the proposed TFSRG using the finite-element analyses (FEA). The cogging torque in the analysis results for the initial model of the proposed TFSRG was relatively high cogging. To reduce a cogging torque, both corners of the stator and PM auxiliary poles were optimized using a circular fillet shape. To satisfy a design condition, the design variables of a circular fillet shape were effectively determined using the optimization algorithm, and the initial and optimal models were compared with the analyzed results by a FEA for steady state and a dynamic performance simulation for transient state, respectively. To verify the analyzed results, an optimized prototype TFSRG was manufactured and measured. The measurement results were in good agreement with analysis results, and the output performance of the prototype was verified by the experiment set.