• Compressible-turbulent flow physics of wet steam in Tesla turbines is studied to assess power recovery. • Scaling laws are modified by introducing a novel thermal parameter ( Ts ). • Optimal rotor dimensions in terms of rotor and second law efficiencies are determined for different inlet angles. • Maximum power decreases and efficiency increases with decreasing steam quality. The Tesla turbine with insulated rotors has been investigated numerically and analytically for the application in Rankine cycle power plants for waste heat recovery. Simulations are performed for the multiphase, compressible, turbulent flow of wet steam to study the thermofluid dynamics and performance characteristics for a wide range of dimensional and dimensionless parameters. The expansion of steam inside the rotor is verified by density and Mach number contours. The increase in radius and inlet angle seems to increase the power obtained, with the maximum total recoverable power reaching as high as 2 M W using 750 m m rotors for inlet angle 3 ° , keeping in view the efficiency. The efficiency curves are compared with that of the laminar, incompressible flow of air, which seems to follow a similar qualitative nature but with a significant decrease in the effect of inlet angle. Fuel cost estimation of a 2000 M W power plant employing the Tesla turbines that use 20 % bled steam is performed and encouraging preliminary reduction in cost is observed. The previously derived scaling laws have been modified and extended to include thermal similarity characteristics using a new dimensionless parameter ( T s ) . Exergy analysis is performed on the rotors, which show that the second law efficiency seems to follow a decreasing trend with increasing inlet angle similar to the rotor efficiency. Sharp drops in rotor and second law efficiencies are observed when the dynamic similarity number Ds drops or rotor radius increases beyond certain values. The exergy destruction seems to increase exponentially with increasing radius. Impact on the performance by the variation of the dryness fraction of wet-steam has been reported for steam qualities 0.8 - 0.95 . Although the obtainable power decreases with the dryness fraction, the rotor and second law efficiency seem to increase, cementing the previous claims of the ability of Tesla turbines to perform efficiently at poor steam qualities.