A study for the flame stability and the combustion characteristics of coaxial diffusion flame was conducted. The fuel employed was natural gas. The experimental variables were rim thickness of fuel tube, blockage ratio of the outer diameter of fuel tube to the inner diameter of air tube, and momentum ratio of fuel to air. It was consequently found that the stability in the neighborhood of the fuel rim depended on the rim thickness, especially in the case of above 3 mm, and that the stable region of the flame extended remarkably due to the formation of recirculation zone above rim. The effect of the blockage ratio on the flame stability was found to be minor in the case of above 3 mm of rim thickness. Between the momentum ratio 2 and 3, the stable flame zone was widely established as well good combustion. With increasing the fuel-air momentum ratio, axial velocity, turbulence intensity, and Reynolds stress increased.