This paper presents a CFD analysis of flow through a convergent-divergent (C-D) supersonic nozzle and impulse turbine, focusing on the effects of nozzle-rotor interaction and optimal axial clearance on performance. The study utilized ANSYS Fluent for modeling and analysis, revealing that adjusting axial clearance can significantly reduce interaction losses. Results indicated good agreement between computational and experimental data, confirming the effectiveness of the modeling approach in predicting nozzle performance.