Surface stress, which is always neglected in classical elastic theories, has recently emerged as a key role in the mechanics of highly deformable soft solids. In this paper, the effect of surface stress on the deformation and instability of soft hollow cylinder is analyzed. By incorporating surface energy density function into the constitutive model of a hyper-elastic theory, explicit solutions are obtained for the large deformation of soft hollow cylinder under the uniform pressure loading and geometric everting. The surface tension and the residual surface stress have a significant effect on the large deformation and instability of the soft cylinder. When the pressure loading and geometric everting are applied on the soft hollow cylinder, significant changes in the critical condition of the creases are found by varying the surface parameters. Two models of instability, surface crease and global buckling behavior, will be generated on the soft hollow cylinder with the uniform pressure, and the formed instability model is dependent on the ratio of the thickness to the radius. The results in this work reveal that surface energy obviously influences both the deformation and the instability of soft hollow cylinder at finite deformation and will be helpful for understanding and predicting the mechanical behavior of soft structures accurately.