Near saturation steam undergoing rapid expansion, with homogeneous nucleation of water droplets, is numerically studied in a series of converging/diverging nozzles with and without shocks. To understand loss mechanisms in such flows a numerical model is presented to calculate thermodynamic losses, which is further used to quantify associated total aerodynamic losses. For the converging/diverging nozzle configuration, the model shows that the overall thermodynamic loss is only mildly influenced by increasing shock strength, while the aerodynamic losses follow that of the single phase flow, and are of the same magnitude as the thermodynamic loss only in the case of very weak shocks. The thermodynamic losses can be attributed to two influences, the homogeneous nucleation event, and the post-shock thermal oscillations in the two-phase system. The calculations rely on a new two-phase CFD model, previously reported, for non-equilibrium phase change with droplet nucleation applicable to general 3D flow configurations. (C) 2003 Elsevier Science Ltd. All rights reserved.