CSCM upwind flux difference splitting compressible Navier-Stokes method has been used to predict the transonic flows in a centrifugal compressor diffuser. The modified cyclic. TDMA and the mass flux boundary conditions were used as boundary conditions of the diffuser analysis. Broad flow separation on the suction surface near the hub and shroud was observed from the results of the mass flow rates 5.8, 6.0 and 6.2kg/s at 27000 rpm. The three-dimensional flow analysis predicted successfully that the static pressure increased and the total pressure decreased through the flow passage of the channel diffuser when compared to two-dimensional analysis due to the strong effect of the three-dimensional flow. The mass averaged loss coefficients and pressure coefficients were also studied.