Bandlimited SSB-FM is analysed in terms of its complex zeros, leading to expressions for the spectral components of both modulated and demodulated signals as a function of the zeros. These confirm that direct distortionless reception is feasible if the modulating signal is sufficiently small. The characteristics of the bandlimited SSB-FM signal and the demodulated signal are analysed, and it is shown that demodulation distortion caused by overmodulation consists mainly of positive 'clicks'. These occur simultaneously with envelope dips, and their frequency may be taken as a measure of distortion noise. Computer simulation provides illustrative examples concerning the use of SSB-FM for speech transmission through a conventional SSB channel, and bounds on the frequency deviation are obtained for this example. The effects of both realistic IF filters and mis-tuning at the receiver are also investigated. The results suggest the potential of narrowband SSB-FM for applications such as mobile radio.166