To investigate the combined heat transfer effects of the hot streak (HS) and axial gap, steady state 3D numerical study was carried out on GE-E3 two stage high pressure turbine. For validation, we compared a test case against published experimental measurements, and achieved reasonably good agreements. The results indicated that the spanwise temperature profiled of HS influences the vane surface temperature. With increased axial distance, circumferential position of hot gas core is changed in front of the blade leading edge, and thermal load of the blade surface is reduced except for the blade SS 50% span. The stage efficiency tends to decrease linearly with the axial gap enlargement