Abstract: The interaction of a screw dislocation in the interphase layer with the circular inhomogeneity and matrix was dealt with. An efficient method for multiply connected regions was developed by combining the sectionally subholomorphic function theory, Schwatz symmetric principle and Cauchy integral technique. The Hilbert problem of the complex potentials for three material regions was reduced to a functional equation in the complex potential of the interphase layer, resulting in an explicit series solution. By using the present solution the interaction energy and force acting dislocation were evaluated and discussed.