Analysis of flow phenomena in a centrifugal compressor impeller has been carried out with numerical simulation to understand the physics of flow near stall. Near stall point, tip leakage flow spills ahead of the leading edge of adjacent blade and other leakage flow passes over the clearance of the adjacent blade instead of rolling up into vortex within the passage. The tip leakage flow at the mid chord of impeller blade impinges against the pressure surface of the adjacent blade and then rolls up into vortex within the passage, which blocks the flow passage and generates viscous loss. The spillage of leakage flow ahead of the adjacent blade generates the recirculation of flow entering the impeller, which causes the power transferred into the flow by the impeller to decrease and blocks the flow passage. Near diffuser hub wall, flow recirculation occurs. As operating point goes to stall point, the core of recirculation approaches the impeller exit The length rises to peak point and then drops with mass flow reduction, while the height steadily rises.