The high demand for natural gas as an energy source leads to place more focus on designing high efficiency centrifugal compressors with wider stable ranges. However, the interaction between the aerodynamic of the single compressor components makes designing the high efficient machines with the wide flow range more complicated. Thus, this paper outlines the development trend of the aerodynamic design of the centrifugal compressors components over the decades driven by the high stage efficiency and wide stable operating range. Additionally, this study will investigate the influential aspects of the unsteady interaction between the aerodynamic stage components and the consequential effect on the compressor efficiency and stable flow range. This covers the discussion of the numerical investigation findings and the experimental observation made on the centrifugal compressor performance.