The results from an experimental study into the effect of compressor rotor tip clearance changes on the steady-state performance and stability margins of a free-power turbine turboshaft engine are presented and discussed. This work was directed at the development of methods to diagnose engine condition from gas path measurements. It was found that the normal production suite of engine instrumentation was able to measure the deterioration in engine performance due to the implanted compressor degradation and the resultant deviations in the measured parameters from their respective nominal baselines do provide useful indicators of engine condition.