For widely used multistage centrifugal pumps, their former structures are so bulky that nowadays growing interest has been shifted to the development of more compact structures. Following this trend, a compact pump structure is provided and analysed. To maintain the pump's pressure recovery, as well as to meet the water flow from the impeller, a circumferential twisted return guide vane (RGV) is proposed. To validate this design method, the instantaneous CFD simulations are performed to investigate the rotorstator interventions. Within the impeller, the pressure fluctuation is cyclic symmetry, where the impeller frequency dominates. At the zone where flow leaves impeller for RGV, the pressure fluctuation is nonperiodic, the impeller frequency is major, and the rotation frequency is secondary. Within RGV, the periodic symmetric fluctuation is recovered, where the rotation frequency is governing. The fluctuation decreases from seven cycles within impeller to two cycles within RGV, indicating that the flow from impeller is well handled by RGV. To examine the pump's performance, a prototype multistage pump is designed. The testing shows that the pump efficiency is 57.5%, and the stage head is 9 m, which is comparable to former multistage centrifugal pumps. And this design is more advantageous in developing compact multistage centrifugal pumps.