The paper presents a detailed numerical investigation of a pulsed detonation combustor (PDC) coupled with a transonic axial turbine stage. The time-resolved numerical analysis includes detailed chemistry to replicate detonation combustion in a stoichiometric hydrogen–air mixture, and it is fully coupled with the turbine stage flow simulation. The PDC–turbine performance and flow variations are analyzed for different power input conditions, by varying the system purge fraction. Such analysis allows for the establishment of cycle averaged performance data and also to identify key unsteady gas dynamic interactions occurring in the system. The results obtained allow for a better insight on the source and effect of different loss mechanisms occurring in the coupled PDC–turbine system. One key aspect arises from the interaction between the non-stationary PDC outflow and the constant rotor blade speed. Such interaction results in pronounced variations of rotor incidence angle, penalizing the turbine efficiency and capability of generating a quasi-steady shaft torque.