An experimental study of the rotation and associated instability was made in a theta pinch with a peak field of 85 kG reached in 2.3 &mgr;sec. The starting deuterium gas pressure was in the range 50–150 &mgr; Hg, and for operation on the second half‐cycle of the sinusoidal driving field the magnetic flux trapped within the plasma varied between ±100 kMx. In most conditions the circular cross section of the plasma became perturbed along its length by the growth of two flutes which rotated at an angular velocity of up to 6 × 107rad/sec. It is deduced from measurements on the rotation that the plasma acquires its angular momentum at the start of the half‐cycle, and the results are interpreted on the basis that the angular momentum is initially in a diamagnetic (azimuthal) ion current. A model is described for establishing this current as a consequence of contact between the plasma and the walls. Results on the time of onset of the instability, and on the growth rate of the flutes, point to the existence of some damping or stabilizing process; it is found that field diffusion, or a rapid axial contraction of the plasma (due to closed reversed field loops), can lead to instability, and when these are reduced the stable time is increased. The possible influence of finite Larmor radius stabilization is discussed. The stability condition, originally derived for low &bgr; but recently shown to have more general validity, is in qualitative agreement with the results.