The capillary instability of a liquid crystalline cylinder in magnetic field is considered using an energy approach. The boundary problem is solved in the linear approximation of the anisotropy Xa of the magnetic susceptibility X. The effect of anisotropy, in the region 1 >> vertical bar X vertical bar > vertical bar Xa vertical bar >> X-2, can be strong enough to counteract and even reverse the tendency of the field to enhance stabilization by enlarging the cutoff wave number k(s) beyond the conventional one set by Rayleigh. (c) 2005 Elsevier Inc. All rights reserved.