Horizontal axial turbine (HAT) is widely used to extract kinetic energy from tidal current. The power absorption of HAT is largely decided by the surrounding flow. A two-phase, sediment-laden mixture model is coupled with the blade element momentum method (BEM) for the impact of HAT on surrounding flow over sediment seabed. The mixture model incorporates theoretical relative velocity, turbulence enhancement from particle wake flow and turbulence damping from high concentration sediment. A blade-induced turbulence (BIT) term is introduced into the mixture model to represent the turbulence production at blade edge. The computed velocity and turbulence are improved by the BIT term in the wake region of HAT. Three turbine hub heights are adopted to investigate the impact of the turbine on sediment seabed and the surrounding flow. Results show that with low turbine hub height, long wake region is generated after the turbine, force exerted on the turbine is asymmetric vertically and thrust and power coefficients decrease. The pattern of bed shear stress is highly dependent on the turbine hub height. The bed shear stress is enhanced under the turbine and strong scour and sediment transport tend to occur on the sediment seabed with low turbine hub height.