Prediction of failure pressures of cracked steam generator tubes of nuclear power plants is an important ingredient in scheduling inspection and repair of tubes. Prediction is usually based on nondestructive evaluation (NDE) of cracks. NDE often reveals two neighboring cracks. If the cracks interact, the tube pressure under which the ligament between the two cracks fails could be much lower than the critical burst pressure of an individual equivalent crack. The ability to accurately predict the ligament failure pressure, called “coalescence pressure,” is important. The failure criterion was established by nonlinear finite element model (FEM) analyses of coalescence of two 100% through-wall collinear cracks. The ligament failure is precipitated by local instability of the ligament under plane strain conditions. As a result of this local instability, the ligament thickness in the radial direction decreases abruptly with pressure. Good correlation of FEM analysis results with experimental data obtained at Argonne National Laboratory’s Energy Technology Division demonstrated that nonlinear FEM analyses are capable of predicting the coalescence pressure accurately for 100% through-wall cracks. This failure criterion and FEA work have been extended to axial cracks of varying ligament width, crack length, and cases where cracks are offset by axial or circumferential ligaments.