The instability of oscillatory flows in a two-layer fluid where the two layers differ in density and viscosity has been analysed using a perturbation method for long waves with special interest on effects of viscosity, time scale, density and depth of the fluid. The flow of a fluid with homogeneous density can be unstable, when the kinematic viscosity of the upper fluid layer is different from that of the lower one. Viscosity stratification results in unstable oscillatory flows. Two limiting cases of single-layer flow are also considered.