This paper presents the steady-state performance analysis of the first stage of a multistage centrifugal pump, composed of a shrouded-impeller, a vaned-diffuser and a return-channel, using the commercially available computational fluid dynamics (CFD) code, ANSYS CFX. The detailed flow fields in the vaned-diffuser with outlet in its side wall and the return-channel are investigated by the CFD code adopted in the present study. The effect of the vaned-diffuser with a downstream crossover bend and the corresponding return-channel on the overall hydrodynamic performance of the first stage pump has also been demonstrated over the normal operating conditions. The predicted hydrodynamics for the diffusing components herein could provide useful information to match the inlet blade angle of the next stage impeller for improving the multistage pump performances.