The clearance exists inevitably between the turbine guide vanes and the fixed wall, and the resulting tip leakage vortex leads to the increase of hydraulic loss. Based on the fluid simulation software ANSYS CFX, the hydrofoil was numerically simulated under different flow velocity conditions. The trajectory and energy dissipation of the tip leakage vortex are discussed. The results show that the jet entrainment with the main flow to form the tip leakage vortex, which is mainly divided into main leakage vortex and separation vortex. The flow evolution of tip leakage vortex can be divided into three stages. The evolution of tip leakage vortex can be divided into three stages: independent development of main leakage vortex and separation vortex, fusion stage, and dissipation of main leakage vortex. The strongest turbulent kinetic energy dissipation occurs in the clearance, which confirms that the clearance causes non-negligible energy dissipation for hydraulic machinery. The results provide guidance for tip leakage vortex control of hydraulic hydrofoil.