This paper describes a CFD based strategy for the modeling of stratified two-phase flows with heat and mass transfer across a moving steam-water interface due to direct contact condensation. Such flows have been of major importance for example in connection with the analysis of nuclear reactor safety systems, in particular during two-phase Pressurized Thermal Shock (PTS) scenarios. The approach is based on the two-fluid phase-average model. The interfacial friction was modeled by using an Algebraic Interfacial Area Density (AIAD) framework where the drag coefficient is a function of the local flow characteristics. To show the impact of the modeling of interfacial friction the simulation with the AIAD model was compared with a simulation where a constant drag coefficient of 0.44 was used in the whole domain. For the modeling of interfacial heat and mass transfer two correlations for the water heat transfer coefficient based on the penetration theory were utilized. The CFD simulations were validated against a steady-state TOPFLOW-PTS steam/water experiment. In the experiment, very detailed temperature measurements were conducted using special thermocouple lances and infrared thermography. Total condensation rate was determined indirectly by using three different methods. The simulations have shown that the results obtained with the AIAD model are considerably closer to the experimental observations than the results obtained with the constant drag coefficient. The condensation models used in the current study predict quite different total condensation rates. That caused significant differences in the temperature field. The simulations of the TOPFLOW-PTS steam/water experiment with condensation have shown that the proposed CFD modeling approach can be successfully applied for the prediction of temperature field and condensation rate during two-phase Pressurized Thermal Shock scenarios. However, the modeling of turbulent interfacial heat transfer should be improved.