In order to study the influence of tip clearance on the performance and energy dissipation of the axial-flow pump and the axial-flow pump as a turbine, and find the location of high dissipation rate, this study took an axial-flow pump model as its research object and designed four tip radial clearance schemes (0, 0.2, 1 and 2 mm). The unsteady calculation simulation of each tip clearance scheme was carried out based on CFD technology. The calculated results were compared with the experimental results, and the simulation results were analyzed using entropy production analysis theory. The results showed that, under both an axial-flow pump and axial-flow pump as turbine operating conditions, increasing the blade tip clearance led to a decrease in hydraulic performance. Compared with the 0 mm clearance, the maximum decreases in pump efficiency, head and shaft power under 2 mm tip clearance were 15.3%, 25.7% and 12.3% under the pump condition, and 12.7%, 18.5% and 28.8% under the turbine condition, respectively. Under the axial-flow pump operating condition, the change in blade tip clearance had a great influence on the total dissipation of the impeller, guide vane and outlet passage, and the maximum variation under the flow rate of 1.0 was 53.9%, 32.1% and 54.2%, respectively. Under the axial-flow pump as a turbine operating condition, the change in blade tip clearance had a great influence on the total dissipation of the impeller and outlet passage, the maximum variation under the flow rate of 1.0 was 22.7% and 17.4%, respectively. Under the design flow rate condition, with the increase in tip clearance, the dissipation rate of the blade surface showed an increasing trend under both the axial-flow pump and axial-flow pump as turbine operating conditions, and areas of high dissipation rate were generated at the rim and clearance.