Optimization using a hybrid multi-objective evolutionary algorithm coupled with response surface approximation has been performed to improve the performance of a transonic axial compressor with circumferential casing grooves. In order to optimize the operating stability and peak adiabatic efficiency of the compressor with circumferential casing grooves, tip clearance, angle distribution at blade tip and the depth of the circumferential casing grooves are selected as design variables. Three-dimensional Reynolds-averaged Navier-Stokes equations with the shear stress transport turbulence model are discretized by finite volume approximations. The trade-off between two objectives with the interaction of blade and casing treatment is determined and discussed with respect to the representative clusters in the Pareto-optimal solutions compared to the axial compressor without the casing treatment.