Queueing Network Models (QNMs) with Finite Capacity provide powerful and realistic tools for the performance evaluation and prediction of discrete flow systems such as computer systems, communication networks and flexible manufacturing systems. Over recent years, there has been a great deal of progress towards the analysis and application of QNMs with finite capacity, and high quality research work has appeared in diverse scientific journals of learning and conference proceedings in the fields of Operations Research, Computer Science, Telecommunication Networks, Management and Industrial Engineering. However, there are still many important and interesting finite capacity queues and QNMs to be resolved, such as those involving multiple-job classes, bounds and theoretical properties, exact analysis, numerical solutions and approximate methods, as well as application studies to computer and distributed systems, high-speed networks and production systems.This volume of Annals of Operations Research on Queueing Networks with Finite Capacity presents 17 extended research papers, both from industry and academia, reflecting current original contributions in the theory and applications of finite capacity queues and networks worldwide. Earlier short versions of these papers were amongst those presented at QNets '95, The Third International Workshop on Queueing Networks with Finite Capacity, 6th-7th July, 1995, Ilkley, West Yorkshire, UK. The papers are classified into four parts covering exact analysis, approximate methods, error bounds and performance modelling studies.