Ejector expansion refrigeration cycle with reference to the constant pressure mixing theory is investigated to display the effects of the liquid–vapor separator efficiency on the performance, entrainment ratio, and area ratio at various operation conditions. Reversible ejector assumption is used for the highest theoretical performance limit, whereas efficiency of the liquid–vapor separator and all ejector components is added to the model to calculate more realistic performance improvement potentials. R1234yf and R1234ze(E) having low global warming potential values are used in the analyses. Zero-dimensional thermodynamic models are constructed applying the conservation equations between the inlets and outlets of the refrigeration cycle and ejector components. Percentage performance decrease is higher when the mixing section and the separator efficiency is added to the model at higher condenser temperatures compared with the lower evaporator temperatures according to the investigated operation ranges. Vapor and liquid separation efficiency affects not only the performance but also the design of the ejector although it is an external component since it has influence on the area ratio and entrainment ratio. Finally, the difference between the percentage performance improvement of the reversible ejector cycle and the realistic ejector cycle including the separator and ejector components efficiencies is as high as 35% at the highest investigated condenser temperature for R1234yf.