This study investigated a three-dimensional flow analysis on a two-stage contra-rotating axial compressor using the Navier–Stokes, continuity, and energy equations with Ansys CFX commercial software. In order to validate the obtained results, the absolute and relative flow angles curves for each rotor in radial direction were extracted and compared with the other investigation results, indicating good agreement. The compressor efficiency curve also was extracted by varying the compressor pressure ratio and compressor efficiency against mass flow rate. The flow results revealed that further distortion of the flow structure in the second rotor imposed a greater increase in the amount of entropy, especially at near-stall conditions. The increase of entropy in the second rotor is due to the interference of the tip leakage flow with the main flow which consequently caused more drops in the second rotor, suggesting that more efficacy of flow control methods occurred in the second rotor than in the first rotor.