Parallel flow in a Hele-Shaw cell occurs when two immiscible liquids flow w
ith relative velocity parallel to the interface between them. The interface
is unstable due to a Kelvin-Helmholtz type of instability in which fluid f
low couples with inertial effects to cause an initial small perturbation to
grow. Large amplitude disturbances form stable solitons. We consider the e
ffects of applied magnetic fields when one of the two fluids is a ferroflui
d. The dispersion relation governing mode growth is modified so that the ma
gnetic held can destabilize the interface even in the absence of inertial e
ffects. However, the magnetic field does not affect the speed of wave propo
gation for a given wave number. We note that the magnetic field creates an
effective interaction between the solitons.