The objective of this project is to study the performance of an annualr slurry jet nozzle for abrasive waterjet cutting. This nozzle has been invented by Avraham. Harnoy, Department of Mechanical Engineering, NJIT and presented to the patent committee of NJIT in May 1990. This study includes design and development of prototyes and testing of their performance. Moreover, it includes initial theoretical study of the flow behavior. The idea is based on the merging of a high velocity pure waterjet with an annular jet of a slurry of water and abrasives at low velocity. The two jets merge outside the nozzle. In this way, the major problems of wear and particle disintegration associated with conventional abrasive waterjet systems are eliminated. Our tests shows that it is possibe to merge the two jets and the abrasive particles are accelerated. However, more experiments are required in actual cutting inorder to evaluate the merits of the proposed nozzle. Initial flow analysis helped to elucidate the flow pattern of the merging. More work is required to varify these results.