Nowadays, a large part of energy is provided by steam turbines; thus, increasing the efficiency and improving the steam turbines performance are of special importance. The presence of the liquid phase in the low-pressure stage of the steam turbine can cause energy loss, efficiency drop, and erosion/corrosion problems; therefore, one of the essential issues is to identify wet steam flow and try to reduce condensation loss. In order to decrease the liquid fraction, the drainage groove technique can be applied. The drainage groove sucks the water droplets from the turbine blade surface and drains them into the condenser. In this study, the effect of the drainage groove location on the surface of steam turbine blades has been investigated on the condensation, droplet radius, inlet mass flow, erosion rate, liquid drainage ratio, condensation losses, and total drainage ratio. For modeling the condensing flow, the Eulerian–Eulerian approach has been applied. The results show that the location of the drainage groove affects the groove performance and flow pattern in the turbine blade. In the selected drainage, the liquid drainage ratio, condensation losses, and erosion rate are reduced by 7.6%, 12%, and 88%, respectively, compared with the no-drainage groove case. Also, the total drainage ratio is 7.2% in the selected drainage. The outcomes of the present work have been a major step forward in the techniques having a great influence on the lifetime, repair and maintenance, and the output power of steam power generation facilities.