This paper describes numerical simulations of self-excited oscillations in a two-dimensional transonic inlet-diffuser flow by solving the Navier-Stokes equations with a two-equation turbulence model. The calculated amplitudes of oscillations for the terminal shock and the velocity fields compare well with experimental measurements; however, the predicted frequency of oscillations is about 50 percent higher. The formation of a pair of downstream-traveling, counter-rotating vortices at each cycle of velocity fluctuations, as reported experimentally, is vividly revealed by the numerical results.