Experimental and analytical studies were performed to examine local condensation heat transfer coefficients in the presence of a noncondensable gas inside a vertical tube. The experimental data for pure steam and steam/nitrogen mixture bypass modes were compared to study the effects of noncondensable nitrogen gas on annular film condensation phenomena. The condenser tube had a relatively small inner diameter of 13 mm. The experimental results demonstrated that the local heat transfer coefficients increased as the inlet steam flow rate increased and the inlet nitrogen mass fraction decreased. The results obtained using steam/nitrogen mixtures with a low inlet nitrogen mass fraction were similar to those obtained using pure steam. Therefore, the effects of noncondensable gas on steam condensation were weak in the small-diameter condenser tube because of interfacial shear stress. A new correlation based on dimensionless shear stress and noncondensable gas mass fraction variables was developed to evaluate the condensation heat transfer coefficient inside a vertical tube with noncondensable gas, irrespective of the condenser tube diameter. A theoretical model using a heat and mass transfer analogy and simple models using four empirical correlations were developed and compared with the experimental data obtained under various experimental conditions. The predictions of the theoretical model and the simple model based on a new correlation were in good agreement with the experimental results.