Several leaks appeared in a mild steel (MS) pipe jet nozzle installed in a direct impact test rig after a few months of operation in erosive flow at the Centre for Erosion–Corrosion Research. The locations of perforation leaks were primarily upstream, but severe wall thinning was also noticed adjacent to the exit section. In this paper, a failure analysis was carried out on the leaking of a pipe jet nozzle, and the results are discussed in detail. The investigation carried out includes visual observation, scanning electron microscopy, 3D scanning, energy-dispersive spectroscopy, and laser profilometry measurements. In addition, numerical simulations based on computational fluid dynamics (CFD) and the discrete phase model (DPM) were conducted to investigate the root cause of the failure of leaks in the pipe jet nozzle. Further CFD-DPM simulations were performed on three different pipe jet designs for liquid–solid flow conditions, and were compared to find an alternative design to prevent the failure of the pipe jet nozzles. It was found that the increase in turbulence along with multiple impacts of particles on the wall generate leaks and cracks in the pipe jet nozzle. Moreover, the CFD-DPM showed a five-fold reduction in the maximum erosion rate; this was observed in the replacement of failed pipes with the proposed alternative nozzle pipe design featuring a chamfer reducer section. The CFD-DPM analysis of all geometric configurations showed that alteration of reducer section design has the greatest impact on erosive wear mitigation.