A mathematical model is presented for the computer simulation of multilayer flow of polymer melts in coextrusion. The proposed model can handle an arbitrary number of layers. The viscosity of each layer is shear-rate and temperature dependent. Given the material properties, die dimensions, and process conditions, the model determines the flow field throughout the die gap. Computer simulations and experimental data are presented for a three-layer polyester/EVA/polyester film coextrusion, with emphasis on the interfacial instability and its effects on optical properties of the film. The results are discussed in the context of the critical interfacial shear stress criterion that has been proposed by Schrenk, et al. (1) for the onset of interfacial instability. It appears that elasticity differences between layers contribute to the interfacial instability. It is conjectured that minimizing interfacial shear stress and matching elasticities of adjacent layers is an appropriate criterion in coextrusion analysis.