High-pressure steam pipes inevitably suffered from the reciprocal interaction of high pressure and temperature during a long-period service, causing deformation and cracking. However, only limited studies about abnormal bulging caused by condensed water have been carried out. To study the relationship between bulging and condensed water, bulging tee joints belonging to high-pressure steam pipes were investigated with a macro visual inspection, chemical composition analysis, and metallographic microscopy. According to the analysis of the bulging samples, pearlite spheroidization was found in the abnormal bulging tee joint. The ANSYS FLUENT modeling indicated that the tube wall of bulging tees was continuously subjected to alternating stress, causing the cyclic transformation of the liquid–gas phase inside the tee joint. The results indicate that the stress produced by a condensed water droplet ranges from 532.8 MPa to 59 MPa, continuously exerting pressure on the tube wall of the tee joint. When combined with the variation in the temperature field, the temperature of the severe bulging tee joint and slight bulging tee joint alternates. Further modeling illustrates that the stress generated by the impact of condensed water droplets on the high-temperature tee joints causes a ratcheting effect, which is identified as the main factor contributing to the bulging of the tee joint. Deterioration of the microstructure is considered a secondary mechanism.