Computations of finite‐amplitude, spatially periodic wave growth on a cylindrical jet have been carried out using a boundary integral method. The initial wave growth is in agreement with Rayleigh’s linear theory. When followed to completion these waves pinch off large drops separated by smaller satellite drops (spherules) that decrease in size with decreasing wavelength. The computed sizes of both drops and satellites agree with experiment. It is found that satellites will form for all unstable wave numbers. The small satellites that are computed at wave numbers near the critical wave number were not predicted by near‐linear analysis but are observed in experimental photographs of jet breakup. Computation of the collapse of elongated satellites shows short waves propagating on their surfaces.