Abstract. We establish the existence and stability of multidimensional transonic flows with transonic shocks through an infinite nozzle of arbitrary cross-sections, including a slowly varying de Lavel nozzle. The transonic flow is governed by the inviscid steady potential flow equation with supersonic upstream flow at the entrance, uniform subsonic downstream flow at the infinite exit, and the slip boundary condition on the nozzle boundary. The multidimensional transonic nozzle problem is reformulated into a free boundary problem, for which the free boundary is a transonic shock dividing two phases of C 1,α flow in the infinite nozzle, and the equation is hyperbolic in the supersonic upstream phase and elliptic in the subsonic downstream phase. We further develop a nonlinear iteration approach and employ its advantages to deal with such a free boundary problem in the unbounded domain and to solve the multidimensional transonic nozzle problem in a direct fashion. Our results indicate that, for the transonic nozzle problem, there exists a transonic flow such that the flow is divided into a C 1,α subsonic flow up to the nozzle boundary in the unbounded downstream region from the supersonic upstream flow by a C 1,α multidimensional transonic shock that is orthogonal to the nozzle boundary at every intersection point, and the uniform velocity state at the infinite exit in the downstream direction is uniquely determined by the supersonic upstream flow at the entrance which is sufficiently close to a uniform flow. The uniform velocity state at the exit can not be apriori prescribed from the corresponding pressure for such a flow to exist. We further prove that the transonic flow with a transonic shock is unique and stable with respect to the nozzle boundary and the smooth supersonic upstream flow at the entrance.