We study the stability of surface waves on the radial film flow created by a vertical cylindrical water jet striking a horizontal plate. In such flows, surface waves have been found to be unstable and can cause transition to turbulence. This surface-wave-induced transition is different from the well-known Tollmien-Schlichting wave-induced transition. The present study aims at understanding the instability and the transition process. We do a temporal stability analysis by assuming the flow to be locally two-dimensional but including spatial variations to first order in the basic flow. The waves are found to be dispersive, mostly unstable, and faster than the mean flow. Spatial variation is the major destabilizing factor. Experiments are done to test the results of the linear stability analysis and to document the wave breakup and transition. Comparison between theory and experiments is fairly good and indicates the adequacy of the model. © 2005 American Institute of Physics.