Numerous impellers are placed in line on a same shaft in a multistage centrifugal pump, comprises impeller, diffuser and return channel. A return channel is employed to direct the flow to the following impeller. This article uses numerical simulation to demonstrate and explain the performance evaluation of a two-stage centrifugal pump. To carry out numerical flow simulation for multistage, stage analysis is performed for each stage. Domain for simulation was created using Creo Parametric software and ANSYS Fluent 2022R1 was used for simulation. The flow simulation is carried out by using the k-ε turbulence model. The flow analysis of first stage is carried out for a different number of blades, viz. 5, 6, and 7, for different speeds varying from 1450 rpm to 1900 rpm. It was observed that 7 blade number and 1900 rpm are optimum in range as it gives the best performance results i.e. H=49.34m & η= 54.65%. The optimal solutions from the first-stage were used to analyse the second-stage. The first stage's flow differs markedly from the following stages. It was observed that losses in diffuser of 1st stage and 2nd stage are almost same but head losses in return passage of 1st stage and 2nd stage are having difference of 19.99%, 28.5%, and 23.59% for 5, 6, and 7 blades respectively. The findings show that the multistage simulation could more accurately mirror the actual flow than the two-stage simulation, but that it also had more demanding computer configuration requirements. Two-stage simulation is a good option for estimating pump performance because it strikes a better balance between computation time and numerical precision. The findings of this research present as a foundation and reference point for future enhancements to multistage centrifugal pump performance.