Experimental and numerical studies have been performed to investigate the effects of the leakage flow tangential velocity on the secondary flow and aerodynamic loss in an axial compressor cascade with a labyrinth seal. Six selected leakage flow tangential (vy/Uhub = 0.15, 0.25, 0.35, 0.45, 0.55 and 0.65) have been tested. In addition to the classical “secondary” flow, shroud trailing edge vortex and shroud leading edge vortex are examined. The overall loss decreases with increasing leakage flow tangential velocity. Increased leakage flow tangential velocity underturns the hub endwall flows through the blade passage, weakening the suction side hub corner separation. Due to the suction effect of the downstream cavity, increasing leakage flow tangential velocity weakens the shroud trailing edge vortex. Also, increasing leakage flow tangential velocity strengthens the shroud leading edge vortex, weakening the pressure side leg of the horseshoe vortex, and, in turn, the passage vortex. Thus, the overall loss is reduced with increasing leakage flow tangential velocity.