This paper aims to numerically assess the cavitation damage of hydrodynamic machines and hydraulic components and its development in time, based on cavitation erosion tests with samples of used materials. The theoretical part of this paper is devoted to the numerical simulation of unsteady multiphase flow by means of computational fluid dynamics (CFD) and to the prediction of the erosive effects of the collapses of cavitation bubbles in the vicinity of solid surfaces. Compressible unsteady Reynolds-averaged Navier–Stokes equations (URANS) are solved together with the Zwart cavitation model. To describe the destructive collapses of vapor bubbles, the modeling of cavitation bubble dynamics along selected streamlines or trajectories is applied. The hybrid Euler–Lagrange approach with one-way coupling and the full Rayleigh–Plesset equation (R–P) are therefore utilized. This paper also describes the experimental apparatus with a rotating disc used to reach genuine hydrodynamic cavitation and conditions similar to those of hydrodynamic machines. The simulations are compared with the obtained experimental data, with good agreement. The proposed methodology enables the application of the results of erosion tests to the real geometry of hydraulic machines and to reliably predict the locations and magnitude of cavitation erosion, so as to select appropriate materials or material treatments for endangered parts.