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<strong class="journal-contentHeaderColor">Abstract.</strong> Blade leading-edge erosion (LEE), atmospheric turbulence intensity (<em>TI</em>) and shear can significantly impact wind turbine performance and annual energy production (AEP). This study employs aeroelastic simulations to investigate their combined effects. An offshore original equipment manufacturer (OEM) provided aeroelastic model was used to simulate various scenarios. Turbulence intensity was varied for a range of wind speeds and the blade polars were modified to simulate different degrees of erosion, represented by varying levels of roughness. Also, simulations with and without the inclusion of wind shear were investigated. Findings reveal that even mild simulated erosion can reduce AEP by 0.82 %, while more severe erosion leads to a 2.83 % decrease. Increasing <em>TI</em> exacerbates these losses, with a 25 % <em>TI</em> causing up to a 3.5 % AEP reduction for eroded blades. These effects were most pronounced at lower wind speeds. Furthermore, standard time-averaging practices in power curve analyses can obscure the true magnitude of <em>TI</em> and LEE's impact on short-term power fluctuations. This work emphasises the critical importance of considering both blade condition and <em>TI</em> for accurate AEP assessments, optimal maintenance scheduling and improved wind turbine design in the context of site-specific atmospheric conditions.