Fast wavelet tool was employed as an aerodynamic instability prediction tool in an isolated-rotor axial compressor with transient circumferential distortion. The spatial and time-resolved high-frequency pressure transducers were installed circumferentially and along blade chord direction to measure the dynamic pressure signal. In current work, the transient circumferential distortion was generated by a flat-baffle designed as adjustable distortion intensity of 0.90%, 4.12% and 24.75% with 25%, 50% and 75% span height to model the distortion generation process in actual compressors. Steady measurement results demonstrated that the stall margin deteriorated by 3.44%, 11.14% and 58.32% with steady circumferential distortion with 25%, 50% and 75% span distortion height, respectively. At the moment when transient circumferential distortion was generated, the characteristic line was suddenly transferred to steady distortion characteristic line and stall margin correspondingly deteriorated; and it returned to the characteristic line under uniform inflow condition with wider stall margin when distortion disappeared. Unsteady pressure was measured and analysed using fast wavelet to predict the aerodynamic stability of axial compressor with transient circumferential distortion. Fast wavelet results showed that after the transient circumferential distortion generated, the amplitude of high frequency reconstructed signal (characteristic signal) correspondingly increased, which means the compressor turned into less stable status. When stability enhancement strategy, steady tip air injection, was implemented, the stability was enhanced by 5.21%, 4.44%, 3.39% and 8.88% using 0.41% design mass flow injection under uniform inflow, steady circumferential distortion with 25%, 50%, and 75% span distortion height, respectively. The amplitude of characteristic signal decreased with injected tip air in all cases. Accordingly, the capability of fast wavelet to predict the stability is verified with circumferential distortion. Therefore, the fast wavelet is a promising aerodynamic stability prediction tool in axial compressor.