A new adjustable guide vane (AGV) is proposed in this paper. This vane can reduce hydraulic losses and improve the performance of an axial flow pump. The formula of AGV adjustment was obtained after theoretical analysis. The fluid flow inside the axial flow pump with a fixed guide vane and adjustable guide vane was simulated. The calculated Q-H curves for the fixed guide vane agreed well with the experimental ones. The results show that the attack angle and flow separation have an important contribution to the vortices which create hydraulic losses in the guide vane channel. The AGV can decrease hydraulic losses and significantly enhance the pump head and efficiency by changing the guide vane angle.