In this paper, a method for simulating the instability transient process of the axial compression system based on the body-force model is developed, and a corresponding simulation program is developed. Simulations of the transient process of instability were carried out on a high-speed four-stage compressor and compared with experimental data. At 50% of the design rotational speed, the type of instability was rotating stall, and the simulated and experimental stall cell propagation speed were very close to each other. At 70% of the design rotational speed, the type of instability was surge. A “surge loop” was simulated, and the surge period and the percentage of time spent in each phase were consistent with the experiments. The simulation successfully predicted the blockage in the surge re-pressurization phase, proving the reliability of the simulation results. In addition, the computation yields more information about the flow field. By summing the blade forces of all grids on a blade row by volume, the surge loadings are obtained. The analysis of the axial momentum equation shows that the obtained blade force variations are reasonable. The simulation time of the multistage axial compressor is greatly reduced compared to the full annulus three-dimensional unsteady Reynolds-averaged Navier–Stokes method, demonstrating its great advantage in the design phase of the compressor.