A common problem in multi-layer shear flows, especially from the perspective of process engineering, is the occurrence of interfacial instabilities. Here we show how multi-layer duct flows can in fact be made nonlinearly stable, by using a suitable lubricating fluid. First we show how interfacial instabilities may be eliminated through the introduction of a yield stress fluid as the lubricant and by preserving an unyielded layer adjacent to the interface. Second we show how to treat the nonlinear stability of a two-layer flow, allowing finite motion of the domains. We focus on the simplest practically interesting case of visco-plastically lubricated viscous shear flow: a core–annular pipe flow consisting of a central core of Newtonian fluid surrounded by a Bingham fluid. We demonstrate that this flow can be nonlinearly stable at significant Reynolds numbers and produce stability bounds. Our analysis can be straightforwardly generalized to other flows in this class.