A turbocharger for an internal combustion engine includes a rotating assembly having a turbine wheel disposed inside a turbine housing and a compressor wheel disposed inside a compressor cover. The turbine housing defines a turbine outlet cavity, a turbine housing inlet, and a turbine housing outlet. The turbine housing inlet is configured to channel engine post-combustion gases to the turbine wheel and the turbine housing outlet is configured to exhaust the gases aft of the turbine wheel. A diffuser arranged inside the turbine outlet cavity is configured to channel the post-combustion gases aft of the turbine wheel and out to the turbine housing outlet, without discharging into the turbine outlet cavity.