Numerical simulations on a single stage transonic compressor which is developed by Korea Aerospace Research Institute are carried out and their results are compared with experimental data for cross validations. Comparisons between experimental data and numerical simulation results show good agreements on a performance curve, static pressure and total pressure distributions. CFD results show that there is a clear interaction between tip leakage flow and normal shock in the rotor passage. Tip leakage flows are almost dissipated after the strong normal shock and it forms a strong recirculation near the blade tip. Also a large separation region grows on the suction surface just after the normal shock. As the pressure ratio and blade loading increase, the normal shock line moves upstream and it starts to deviate from the blade leading edge. Then the tip leakage flow does not overcome the strong adverse pressure gradient and flow blockage originated from the tip recirculation region. As a result, the tip leakage flow heads for the neighboring blade leading edge, which results in a compressor stall.