Abstract: With a simplified set of equations of shallow shells, the stress concentration is analysed for circular cylindrical shells with a small circular hole under internal pressure. Taking account of the effect of transverse shear-deformability, we obtain the approximate analytical solution and numerical results of stress concentration factors with the method similar to that used in the analysis of stress cocentration for cylindrical shells by the theory of thin shallow shells. The results show some new features of the transverse shear deformation effect on the stress concentration.