The blade tip clearance loss was studied experimentally and numerically for a micro radial fan with a tip diameter of 19:2mm. Its relative blade tip clearance, i.e., the clearance dividedby the blade height of 1:82mm, was adjusted with different shims. The fan characteristics were experimentally determined for an operation at the nominal rotational speed of 168 krpm with hot air (200°C). The total-to-total pressure rise and efficiency increased from 49 mbar to 68 mbar and from 53% to 64%, respectively, by reducing the relative tip clearance from 7.7% to the design value of 2.2%. Single and full passage computational fluid dynamics simulations correlate well with these experimental findings. The widely-used Pfleiderer loss correlation with an empirical coefficient of 2.8 fits the numerical simulation and the experiments within 2 efficiency points. The high sensitivity to the tip clearance loss is a result of the design specific speed of 0.80, the highly-backward curved blades (17°), and possibly the low Reynolds number. The authors suggest three main measures to mitigate the blade tip clearance losses for smallscale fans: (1) utilization of high-precision surfaced-grooved gas-bearings to lower the blade tip clearance, (2) a mid-loaded blade design, and (3) an unloaded fan leading edge to reduce the blade tip clearance vortex in the fan passage.