The elastic behavior of an edge dislocation located inside the core of a core-shell nanowire which is embedded in an infinite matrix is studied within the surface/interface elasticity theory. The corresponding boundary value problem is solved exactly by using complex potential functions and Laurent series expansion. An important parameter so-called interface characteristic parameter which has the dimension of length and is a combination of the interface moduli enters the formulations. The stress field of the dislocation, image force acting on the dislocation, and the dislocation strain energy is calculated by considering the interface effect. The stress field of the dislocation is shown as contour plots and the results are compared with classical case. The image forces acting on the dislocation are studied in details and it is shown that they depend on the interface characteristic parameter, nanowire dimension, dislocation orientation, and dislocation distance from the interface. Moreover, the repelling and attracting effects of the interface parameter on the image force are discussed. The equilibrium position of the dislocation is also studied. The dislocation strain energy in the interface elasticity framework is only slightly different from that of traditional elasticity when the dislocation is placed in the central region of the core and reaches its maximum value when it is located near the core–shell interface.