We simulate the gas-atomization process of a close-coupled annular nozzle for vacuum induction gas atomization at a three-dimensional scale. Moreover, the relationship between the simulated droplet type and experimentally metallic powder is established by comparing the morphology of droplets with powders. Herein, the primary atomization process is described by the volume-of-fluid (VOF) approach, whereas the prediction of powder diameter after secondary atomization is realized by the VOF-Lagrangian method. In addition, to completely reflect the breaking and deformation process of the metallic flow, we employ the VOF model to simulate the secondary atomization process of a single ellipsoidal droplet. The results show that the primary atomization process includes the formation of surface liquid film, appearance of serrated ligaments, and shredding of ligaments. Further, gas recirculation zone plays an important role in formation of the umbrella-shaped liquid film. The secondary atomization process is divided into droplet convergence and dispersion stages, and the predicted powder diameter is basically consistent with the experiment. In general, the four main powder shapes are formed by the interaction of five different typical droplets.