Changes in loss generation associated with altering rotor tip blade loading of an embedded rotor–stator compressor stage are assessed with unsteady three-dimensional computations, complemented by control volume analyses. Tip-fore-loaded and tip-aft-loaded rotor blades are designed to provide variation in rotor tip blade loading distributions for determining a compressor design hypothesis that aft-loading a rotor blade tip yields a reduction in loss generation in a stage environment. Aft-loading a rotor blade tip delays the formation of tip leakage flow, resulting in a relatively less mixed-out tip leakage flow at the rotor outlet and a reduction in overall tip leakage mass flow, hence a lower loss generation. However, the attendant changes in tip flow angle distribution are such that there is an overall increase in the flow angle mismatch between tip flow and main flow, leading to higher loss generation. The latter outweighs the former; therefore, rotor passage loss from aft-loading a rotor tip is higher unless a constraint is imposed on tip flow angle distribution so that the associated induced loss is negligible. Tip leakage flow, which is not mixed-out at the rotor outlet, is recovered in the downstream stator. The tip leakage flow recovery process yields a higher benefit for a relatively less mixed-out tip leakage flow in the tip-aft-loaded rotor blades on a time-averaged basis. These characterizing parameters together determine the attendant overall loss associated with rotor tip leakage flow in a compressor stage environment. The revised design hypothesis is thus as follows: A rotor should be tip-aft-loaded and hub-fore-loaded while a stator should be hub-aft-loaded and tip-fore-loaded with tip/hub leakage flow angle distribution such that it results in no additional loss. For the compressor stage being assessed here, an estimated 0.15 points enhancement in stage efficiency is possible from aft-loading rotor tip only.