This work deals with the coupling interaction of a screw dislocation with a bimaterial interface and a nearby circular inclusion. Explicit series solutions are obtained by the complex potential and conformal mapping technique. Then the solutions are cast into new expressions with the coupling interaction effects separated. The new expressions converge rapidly and provide good first-order approximation formulae. The interaction energy and image force fields are formulated, evaluated, and shown graphically. It is found that the inclusion severely distorts the neighboring interaction energy contours and image force lines. There must be one unstable equilibrium point in Material 2 where the inclusion is located, whereas there may be zero, one or two equilibrium points (stable or unstable) in Material 1 without any inclusion, which depends on a combination of three material shear moduli and the nondimensional distance between the inclusion and bimaterial interface. It is interesting to notice that the direction of some local image forces in Material 1 may be inversed by a nearby inclusion in Material 2, and the inverse region is close to but not connected to the bimaterial interface.