The use of a submerged inlet is advantageous in modern aircrafts because of its low drag resistance, small radar cross section and ease of maintenance. Although it is well known that the forebody boundary layer deteriorates the aerodynamic performance of a submerged inlet, the level of impact has not yet been fully quantified. To quantify the forebody boundary-layer effect, a submerged diverter was designed to remove a portion of the low-energy boundary flow. The flow pattern and aerodynamic performance of a submerged inlet, with and without the diverter, were investigated by wind-tunnel experimentation and numerical simulations. The effects of mass flow, free stream speed, angle-of-attack and sideslip angle on the aerodynamic characteristics of the inlet with and without the submerged diverter were studied, over an operating envelope of M0 = 0.3 ∼ 0.6, $\alpha$ = –6$^{\circ}$ ∼ 8$^{\circ}$ and $\beta$ = 0$^{\circ}$ ∼ 4$^{\circ}$. The results indicate that both the total pressure loss and the circumferential distortion can be significantly reduced with the removal of the forebody boundary-layer low-energy flow. Meanwhile, the main mechanisms for losses in the submerged inlet were also analysed.