The Milne-Thomson circle theorem constructs a circular impermeable boundary in a two-dimensional potential flow. Suppose an incident complex potential of a two-dimensional potential flow is analytic on and inside , with its physical singularities outside that disk. Then the displayed has constant stream function on . The proof is the identity on the circle: there is real. Hence the circle is a streamline and satisfies the no-penetration boundary condition. The reflected term has its image singularities inside the obstacle. Additional imposed circulation must be specified separately. The theorem is named after Louis Melville Milne-Thomson.

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The Milne-Thomson circle theorem is a concept in fluid dynamics and potential flow theory. It relates to the flow of an ideal fluid (inviscid and incompressible) around obstacles and is particularly useful for analyzing flow patterns around circular objects.