Abstract: A displacement machine is for acting on a working fluid and is provided with a lubricant and working fluid separator. The fluid separator has a separator volume constrained by a shielding member, a first fluid channel providing fluid communication between a first and second inner volumes and the separator volume, a second fluid channel providing fluid communication between the separator volume and a working fluid return volume. The fluid separator, the first fluid channel and the second fluid channel are fully contained within a full volume of the displacement machine. A method is for separating lubricant and working fluid in a displacement machine.