In　this　paper,　we　consider　a　predator-prey　system　incorporating　mutual　interference　into　predator　and　the　fear　effect　into　prey.　By　using　theories　on　exceptional　directions　and　normal　sectors,　we　show　that　both　the　two　boundary　equilibria　are　saddle　points　and　the　interior　equilibrium　is　globally　stable.　Compared　to　the　corresponding　predator-prey　model　without　mutual　interference,　we　find　that　the　mutual　interference　can　stabilize　the　predator-prey　system.　©　2019　Journal　of　Applied　Science　and　Engineering.　All　rights　reserved.