Pumps represent a quintessential type of fluid machinery and play a pivotal role in global economic development, especially in the hydropower industry. However, as their application range and single unit capacity continue to increase, the occurrence of rotating stall phenomena caused by internal flow instability has become more frequent. This phenomenon is especially prominent in pumps with semi-open impellers, where the presence of tip leakage flow (TLF) instability accelerates the rotating stall phenomenon. Over the past few decades, extensive research has been conducted to investigate the characteristics of rotating stall in pumps. As a result, there is now a preliminary understanding of the phenomenon of rotating stall induced by tip leakage flow in pumps. However, a significant gap remains in fully comprehending the underlying mechanism of this phenomenon. This review comprehensively reviews the research progress made in understanding the relationship between pump tip leakage flow instability and rotating stall. It encompasses various aspects, including the formation mechanism of tip leakage flow, the structure of tip leakage vortex (TLV) under stall conditions, the correlation between dynamic characteristics of tip leakage flow and rotating stall, as well as methods for mitigating rotating stall through tip leakage suppression. Finally, some promising potential stall suppression method is discussed to provide some guidance for the fields of fluid machinery.