Improvement of surge margin and reduction of interaction tone noise radiated from a centrifugal compressor with a vaned diffuser is discussed from experiments and CFD analyses. Two types of one-side tapered diffuser vanes, which are shroud-and hub-side tapered vanes, were used in the experiments. The height of the leading edge of the tapered vanes varied from 100% to 10%. Both types of tapered vanes are effective for the reduction of the interaction tone noise radiated from the compressor, because of the smaller interaction area between impeller-discharge flow and diffuser vane surface. Especially, the hub-side tapered diffuser vane suppresses the evolution of the leading-edge vortex, which causes reverse-flow in the diffuser passage. Furthermore, the hub-side tapered diffuser vane, which has an optimized diffuser leading edge shape, can improve the compressor pressure-rise characteristics at low-flow operation and can enlarge the surge margin.