Closed-form analytical expressions are derived for the displacement field and corresponding stress state in two-layer cylinders subjected to pressure and thermal loading. Solutions are developed both for cylinders that are fully restrained axially (plane strain) and for cylinders that are axially loaded and spring-mounted. In the latter case, it is assumed that the combined two-layer cross section remains plane after deformation (generalized plane strain). The analytical solutions are verified by means of detailed three-dimensional finite element (FE) analyses, and they are easily implemented in, and suitable for, engineering applications. The chosen axial boundary conditions are demonstrated to be particularly relevant for pipeline and piping applications. By applying the exact solutions derived in the present study to typical offshore lined or clad pipelines, it is demonstrated that thermal expansion of the liner or clad layer may cause higher tensile hoop stresses in the pipe steel wall than accounted for in current engineering practice. It is shown that repeated cycles of start-up and shut-down phases for lined or clad pipelines cause significant plastic stress cycles in liners or claddings, which may pose a risk to the integrity of such pipelines.