Effect of the increase in operating speed, temperature and pressure ratio on turbomachine components must be studied and understood seriously. One of the major challenges is to choose a right initial clearance for seals considering the seal growth as it may affect rotor system dynamic characteristics and leakage performance. In the present study the dynamic response of the rotor system has been calculated considering the seal growth effect at each operating speed. It is been analyzed by the response plots and the orbital plots. The results show that the dynamic response of the system is influenced by radial growth of seal at lower pressure ratio and higher rotational speed. At higher pressure ratio the radial growth of seal has insignificant effect on rotor stability. In addition to these, the present study also emphasizes on the effect of the seal on the overall rotor system by comparing two different rotor-seal system. © 2020 Published under licence by IOP Publishing Ltd.