A sedimentation basin is used to remove suspended sediments which can cause abrasive and erosive wear on hydraulic turbines of hydropower plants. This sediment erosion not only decreases efficiency of the turbine but also increases maintenance costs. In this study, the three-dimensional numerical simulations were carried out on the overseas hydropower project. The simulations of flow and suspended sediment concentration were obtained using FLOW-3D computational fluid dynamics code. The simulations provide removal efficiency of a sedimentation basin based on particle sizes. The influence of baffles on the flow field and the removal efficiency of suspended sediments in the sedimentation basin has been investigated. This paper also provides the numerical simulations for sediment-induced density currents that may occur in the sedimentation basin. The simulation results indicate that the formation of density currents decreases the removal efficiency. When a baffle is installed in the sedimentation basin, the baffle provides intensive settling zones resulting in increasing the sediments settling. Thus the enhanced removal efficiency can be achieved by installing the baffle inside the sedimentation basin.