The current paper first reviews experimental and numerical investigations to understand flow physics and to develop optimum configurations of circumferential grooves in compressor rotors. Circumferential grooves are used mainly to increase stall margin in axial compressors with small decrease in aerodynamic efficiency. Although circumferential groove casing treatment has been used widely, flow mechanisms of the circumferential grooves at near stall conditions are not well understood yet. Detailed time-dependent flow measurement inside tip gap in a high speed compressor is still a big challenge even though significant advance has been made in non-intrusive flow measurement technique. Therefore numerical approaches have been used to study relevant flow physics. However, optimum design of circumferential grooves to a given compressor with the computational tools is not practical yet. In the present paper, various investigations to study flow physics of circumferential groove casing treatment in axial compressor are reviewed first. Possible missing flow physics are identified and future research efforts for the optimum design are discussed.