An experimental study on the performance and instability development characteristics of a centrifugal compressor equipped with a cambered variable diffuser has been performed with varying diffuser vane angles. The test was conducted at the design speed of 20,800 rpm and the 80% design speed of 16,640 rpm for 5 diffuser angles : 65$^{circ}$, 70$^{circ}$, 75$^{circ}$, 77.5$^{circ}$, 80$^{circ}$ The steady performance test results showed that choking mass flow rate decreases and total pressure ratio increases with a narrowed surge margin as the diffuser vane angle increases. Unsteady pressures were measured using high-frequency pressure transducers at the inducer and the diffuser throat to investigate the instability phenomena such as rotating stall and surge inside the compressor. From the unsteady measurements, it is found that the transient process from rotating stall to surge was mainly affected by diffuser angles. The results of the present study can be applied to the instability control of the centrifugal compressors using a variable diffuser.