AbstractIn this study, we consider the Oseen structure of the linearization of a compressible fluid–structure interaction (FSI) system for which the interaction interface is under the effect of material derivative term. The flow linearization is taken with respect to an arbitrary, variable ambient vector field. This process produces extra “convective derivative” and “material derivative” terms, which render the coupled system highly nondissipative. We show first a new well‐posedness result for the full incorporation of both Oseen terms, which provides a uniformly bounded semigroup via dissipativity and perturbation arguments. In addition, we analyze the long time dynamics in the sense of asymptotic (strong) stability in an invariant subspace (one‐dimensional less) of the entire state space, where the continuous semigroup is uniformly bounded. For this, we appeal to the pointwise resolvent condition introduced in Chill and Tomilov [Stability of operator semigroups: ideas and results, perspectives in operator theory Banach center publications, 75 (2007), Institute of Mathematics Polish Academy of Sciences, Warszawa, 71–109], which avoids an immensely technical and challenging spectral analysis and provides a short and relatively easy‐to‐follow proof.