Abstract: The two-dimensional rotor-stator unsteady flow in an axial compressor is calculated by using Euler equations in absolute frame.The computational grids consist of a rotor grid,a stator grid and a intermediate grid which is designed for the connection of blade rows.The fore-boundary points of this intermediate grid rotate with the rotor blades and the aft-boundary points connect with the stator blades.Since the feature of the moving grid is considered in the Euler equations,so it is unnecesary to use the time-consuming interpolation method for information transmission between rotor and stator blade rows.The results of numerical calculation verify the feasibility of the presented approach for calculation of the rotor-stator unsteady flow.