In order to improve cutting capability of a submerged abrasive suspension jet (ASJ), a ventilated sheathed nozzle for producing an air coated ASJ has been developed. Cutting characteristics of air coated ASJs under submerged condition are provided by cutting tests with specimens of aluminium alloy. Unsteady behaviour of the air coated layer around the jet is also investigated by high speed observations of air coated water jets. The cutting capability of air coated ASJs and the unsteady behaviour of the air coated layer of the submerged jets are arranged properly by the cavitation number based on the pressure in the ventilated cavity and Strouhal Number.