Diffuser performance for the two-phase flow of air-water mixture has been scarcely examined, though that for the mono-phase flow has been examined and the optimum profile given. The diffuser performance for the two-phase flow is affected non only by the diffuser profile, but also by the diffuser inlet velocity. Thus, this report aims to make clear these effects on the performance for an air-water mixture ratio 0-0.15m and to decide the desirable profile and inlet velocity. The performance deteriorates as the mixture ratio increase, but the optimum inlet velocity exists for each mixture ratio and diffuser profile. The best performance is obtained when the diffuser length-width ratio 1/W is about 7 in spite of the mixture ratio. At 1/W = 7, the optimum divergent angle and inlet velocity are also given.