Cryogenic turboexpanders for nitrogen refrigeration and liquefaction cycles operating near liquefaction conditions are vulnerable to droplet formation. The turboexpander must be devoid of any traces of droplets, as this may cause damage to the blades and also result in performance deterioration. Hence, a multiphase flow analysis was conducted, based on the droplet condensation model in Ansys CFX ® , to identify any possible droplet sites and its nature of propagation. A single-phase steady state simulation of the turboexpander was performed initially to identify the regions susceptible to droplet formation, followed by a multiphase analysis to study the flow field behavior and to characterize the droplet nucleation and growth. It has been observed that the low-pressure regions like vortices and wakes are susceptible to sub-cooling and thereby in droplet formation. Also, major geometrical parameters that affect the droplet nucleation have also been identified. Copyright © 2018 ASME.