Flowfields within turbines are generally three-dimensional and unsteady. Typically, the flow-fields in the interaction zone between the last stage and the diffuser are strongly inhomogeneous. This non-uniformity strongly limits the downstream diffusion process, so that significant improvement can be achieved by making the total pressure field in this zone more uniform. One way to achieve this is by using kinks in the endwall contours and, if necessary, one or two splitters. The use of balance-based space averaging and modelling procedures can help to characterize these flows, and to develop an optimum interaction zone and diffuser geometry. In the study described here, as an example the interaction zone of high-pressure/intermediate-pressure (HP/IP) and low-pressure (LP) diffusers of steam turbines were numerically and partly experimentally optimized for a fixed blading and exhaust. The operating conditions were also kept constant except that for low pressures the flowfield was studied for a range of back pressures (i.e. exhaust velocities). The optimization process starts with an initial flowfield in the interaction zone generated numerically or experimentally. Using these data a design procedure is applied that creates both a much more uniform total pressure field at the last stage exit and a diffuser geometry possibly with one or two splitters and proven for an earlier LP design experimentally. It was demonstrated that, depending on the inhomogeneity of the flow from the upstream stage, a performance improvement of several percentage points could be achieved.