In this paper, a new pressure reducing valve (PRV) with an orifice plate is proposed. The main objective is to explain the mechanisms of pressure reduction and energy conversion in the new PRV. A numerical simulation method was used to investigate the PRV internal flow field and to analyze the throttling effects of the orifice plate and the transform of thermal parameters as outlet pressure, outlet temperature, velocity, and superheat. A structure improvement method for the valve body and orifice plate is put forward to reduce energy loss. The governing equations for internal flow numerical simulation are composed of the continuity, momentum, energy and k-ε transport equations, based on isotropic eddy viscosity theory. Different valve plug displacement models were built to describe the double throttling process. Our analysis shows that the steam pressure drops twice and the degree of superheat increases. There are also lots of eddies which clog the flow channel and disturb the steam flow in the valve cavity after the valve plug and the outlet cavity. After modifying the structure, the numerical results show a better performance of steam flow.