This paper reports an experimental investigation on a centrifugal compressor with the adjustable inlet guide vane. The compression system is composed of a radial impeller, a vaneless diffuser, and an IGV. The results have shown that surge line on the performance map is affected by the amount of prewhirl and the prewhirl has an effect on transient region between rotating stall and surge. The surge lines have been shifted toward the lower flow region with the increased positive prewhirl and the higher flow region with the increased negative prewhirl. During the unsteady performance test, it was also found that the transient region was reduced with the increased negative prewhirl, and weak signals of rotating stall were detected just before surge as the positive prewhirl was increased.