This paper deals with the analysis of leakage characteristics of the proportional directional valve. These characteristics distinguish a real directional valve from an ideal one. The ideal directional valve is characterized by zero leakage due to its perfect geometry. The investigated element is the three-position four-way proportional directional valve with zero spool lap and feedback from the spool position. The spool position is measured by the inductive position sensor and processed by external electronics. Internal leakage occurs due to axial and radial clearances between the spool and the sleeve. The magnitude of axial clearances that occur at throttle edges and their effect on the directional valve leakage is the subject of research. The blocked-line pressure sensitivity curve, the leakage flow curve and the center flow curve are determined by experiment. Individual characteristics are determined for different working fluid temperatures and different supply pressures. The flow through internal leaks in the center position of the valve spool is determined by analytical calculations. The flow through internal leaks is also simulated using the Ansys Fluent software. Subsequently, the geometry of the flow simulation model is modified to take into account manufacturing tolerances. From simulation results, the effect of the manufacturing tolerance magnitude on the internal leakage of the directional valve is evaluated. Finally, simulated dependencies are compared with experimentally determined characteristics.