An output shaft air/oil separator system comprises an outer housing, an oil passage, a spline shaft having a cavity formed therein that communicates with the oil passage, an output shaft disposed at least partially within the spline shaft cavity that has a first section spaced apart from an inner surface of the spline shaft to form a gap therebetween in communication with the spline shaft cavity and a second section contacting at least a portion of the spline shaft inner surface, a housing cavity defined by at least a portion of an outer surface of the spline shaft and the outer housing, an annular groove formed in the spline shaft communicating with the spline shaft cavity, and at least one port extending between the spline shaft inner and outer surfaces in communication with the annular groove and the housing cavity.