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The heat transfer and thermal hydraulic stability in a two-phase thermosyphon with coaxial riser and down-comer has been experimentally investigated and theoretically analyzed to facilitate its application in cold neutron source. The flow in a coaxial thermosyphon was studied experimentally for a variety of heating rates, transfer tube lengths, charge capacities, and area ratios. A numerical analysis of the hydraulic balance between the driving pressure head and the resistance loss has also been performed. The results show that the presented coaxial thermosyphon has dynamic performance advantages relative to natural circulation in a boiling water reactor.