Pressure swirl nozzles are widely applied in various heat and mass transfer applications due to advantages of reliable performance, simple structure, and easy processing. However, the complex design of the nozzle structure makes it difficult to miniaturize the pressure swirl nozzle, which restricts its use in limited spaces. In this study, a compact pressure swirl nozzle is proposed by merging a swirl chamber with the tangential inlet flow channel, addressing the issue of liquid atomization in limited spaces. The key geometric parameters are determined based on the internal flow properties by swirl chamber simulation. A spray test bench utilizing a phase Doppler particle analyzer and a high-speed camera was built to study the effect of pressure drop, geometric size, and nozzle inlet shape on spray characteristics. The simulation results show that the nozzle diameter and inlet shape are the main factors affecting flow in the swirl chamber. The experimental results further demonstrate that increasing nozzle diameter increases flow rate and spray cone angle, causing the droplets to move to the spray edge. The spray characteristics are affected by the inlet shape of the nozzle hole: radial velocity and particle size show a wider range of change with a funnel-shaped inlet. Axial velocity and pressure drop are obviously affected by a cylindrical-shaped inlet. This study provided a new design approach for pressure swirl nozzles and achieved flow rate of 5–35 l/h and Sauter mean diameter below 40 μm with an overall weight of 12 g. This compact nozzle construction is a reference for the design of atomizing nozzles in limited spaces.