While recent observational studies have shown the critical role of atmospheric transient eddy (TE) activities in midlatitude unstable air-sea interaction, there is still a lack of a theoretical framework characterizing such an interaction. In this study, an analytical coupled air-sea model with inclusion of the TE dynamical forcing is developed to investigate the role of such a forcing in midlatitude unstable air-sea interaction. In this model, the atmosphere is governed by a barotropic quasi-geostrophic potential vorticity equation forced by surface diabatic heating and TE vorticity forcing. The ocean is governed by a baroclinic Rossby wave equation driven by wind stress. Sea surface temperature (SST) is determined by mixing layer physics. Based on detailed observational analyses, a parameterized linear relationship between TE vorticity forcing and meridional second-order derivative of SST is proposed to close the equations. Analytical solutions of the coupled model show that the midlatitude air-sea interaction with atmospheric TE dynamical forcing can destabilize the oceanic Rossby wave within a wide range of wavelengths. For the most unstable growing mode, characteristic atmospheric streamfunction anomalies are nearly in phase with their oceanic counterparts and both have a northeastward phase shift relative to SST anomalies, as the observed. Although both surface diabatic heating and TE vorticity forcing can lead to unstable air-sea interaction, the latter has a dominant contribution to the unstable growth. Sensitivity analyses further show that the growth rate of the unstable coupled mode is also influenced by the background zonal wind and the air–sea coupling strength. Such an unstable air-sea interaction provides a key positive feedback mechanism for midlatitude coupled climate variabilities.