In this study, to clarify the failure mechanism of the last-stage rotor blade in the low-pressure cylinder of a steam turbine, the peculiarities of crack initiation and propagation on the inlet side of the last-stage rotor blade at a distance of 125–165 mm were analyzed, along with the corrosion fatigue properties of its materials. The results showed that crack initiation occurred at the tip of the pit due to a combination of factors: stress concentration at the tip of the pit, corrosion of the Cr-poor area near the prior austenite grain boundary, centrifugal tensile stress, and steam bending stress. The crack propagation could be divided into the initial intergranular and late transgranular propagation stages. The main reason for the initial intergranular propagation was stress corrosion, and the main reason for the later transgranular propagation was corrosion fatigue. High-frequency induction quenching technology can improve the microhardness of the blade's surface material and enhance the blade's resistance to water erosion, but it may also reduce the corrosion fatigue resistance of the blade material. The rotary bending corrosion fatigue test can effectively simulate the crack propagation process of the blade. These results are of great significance for the safe operation of the last-stage rotor blade in the low-pressure cylinder of a steam turbine.