In this paper the stability of annular pressure‐driven parallel flows of two liquids sandwiching a free cylindrical interface is considered. For small to moderate Reynolds numbers, the interface is susceptible to capillary and interfacial wave instabilities, the latter instability caused by a jump in viscosity at the interface. It is shown that favorable velocity profiles in both liquids may stabilize capillary breakup of the interface and suppress the axisymmetric interfacial wave instability. A long‐wave analysis leads to the physical mechanism responsible for stabilization of capillary breakup. This physical mechanism is a generalization of that by which capillary breakup is stabilized by interfacial shear in an annular film of a single liquid. Stabilization of intermediate wavelengths is studied with a mechanical energy analysis, which leads to a description of the energetic processes at work.

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