The Plateau–Rayleigh instability shows that a cylindrical fluid flow can be destabilized by surface tension. Similarly, capillary forces can make an elastic cylinder unstable when the elastocapillary length is comparable to the cylinder's radius. While existing models predict a single isolated bulge as the result of an instability, experiments reveal a periodic sequence of bulges spaced out by thinned regions, a phenomenon known as beading instability. Most models assume that surface tension is independent of the deformation of the solid, neglecting variations due to surface stretch. In this work, we assume that surface tension arises from the deformation of material particles near the free surface, treating it as a pre-stretched elastic surface surrounding the body. Using the theoretical framework proposed by Gurtin and Murdoch, we show that a cylindrical solid can undergo a mechanical instability with a finite critical wavelength if the body is sufficiently soft or axially stretched. Post-buckling numerical simulations reveal a morphology in qualitative agreement with experimental observations. Period-halving secondary bifurcations are also observed. The results of this research have broad implications for soft materials, biomechanics, and microfabrication applications where surface tension plays a crucial role.