A downhole motor for drilling and servicing of wells has an elongated outer housing and an elongated mandrel rotatably disposed within the housing. A primary thrust bearing is disposed between the lower end of the housing and the mandrel, and transfers axial loads downward from the housing to the mandrel, and then to the drill bit or other tool mounted on the lowermost end of the mandrel. The placement of the primary thrust bearing permits it to extend radially to the outer diameter of the housing. One preferred embodiment of the primary thrust bearing comprises bearing surfaces of polycrystalline diamond compact (“PDC”) material.