Quasi-one-dimensional steady-state cavitating nozzle flows with homogeneous bubble nucleation and nonlinear bubble dynamics are considered using a continuum bubbly liquid flow model. The onset of cavitation is modeled using an improved version of the classical theory of homogeneous nucleation, and the nonlinear dynamics of cavitating bubbles is described by the classical Rayleigh-Plesset equation. Using a polytropic law for the partial gas pressure within the bubble and accounting for the classical damping mechanisms, *in a crude manner*, by an effective viscosity, stable steady-state solutions with stationary shock waves as well as unstable flashing flow solutions were obtained, similar to the homogeneous bubbly flow solutions given by Wang and Brennen [J. Fluids Eng., 120, 166–170, 1998] and by Delale, Schnerr, and Sauer [J. Fluid Mech., 427, 167–204, 2001]. In particular, reductions in the maximum bubble radius and bubble collapse periods are observed for stable nucleating nozzle flows as compared to the nonnucleating stable solution of Wang and Brennen under similar conditions.