We study the generation of waves at the interface of two immiscible fluids, arising due to shear-driven, inviscid instabilities. The background profile is chosen to be the classic exponential velocity profile (Morland & Saffman, J. Fluid Mech., 1993, vol. 252, pp. 383–398) with a sharp density interface (stable stratification). At low Froude
$(\sim O_m(1))$ and high Bond numbers (
$\sim O_m(100)$), relevant to geophysical and astrophysical situations, we demonstrate a novel (smooth) transition for the fastest growing mode: from the Kelvin–Helmholtz (KH) instability at density ratio
$\delta = 0.9$ (ratio of upper to lower fluid densities) to the Holmboe (H) instability as
$\delta \rightarrow 0.5$ and onwards to the Miles (J. Fluid Mech., 1957, vol. 3, issue 2, pp. 185–204) critical layer instability as
$\delta \rightarrow 0.001$ (air–water). Notably, the Miles fastest growing mode with its (characteristic) sharp jump in (inviscid) Reynolds stress (
$\tau$) at the critical location, persists up to
$\delta = 0.01$ i.e. up to ten times the air–water value. The vertical (
$z$) variation of the Reynolds stress (fastest mode), displays a qualitative change with increasing
$\delta$; transitioning from having a sharp jump at the critical location for
$\delta \ll 1$ (Miles) to smooth variation through this location for
$\delta \geqslant 0.5$ (H). A theoretical explanation for this is presented. In the higher density ratio regime (
$0.5 \leqslant \delta \leqslant 0.9$), by comparing against stability results from the corresponding piecewise linear (PL) velocity profile, we show the possibility of the H and the KH instability in the exponential model. Simulations, solving the incompressible Euler’s equation with gravity and surface tension are reported. In the Miles regime (
$\delta =0.01$) excellent agreement with linear theory upto five wave periods is observed. As these waves saturate, tiny surface ripples appear. Increasing
$\delta$ to
$0.1$, finite-amplitude waves resulting from the instability display larger-amplitude ripples on their surface; these are reminiscent of Stokes waves with capillary effects. With further increase (
$\delta =0.5$), exponentially growing waves display a sheared cusp at the crest in the nonlinear regime. They emit spume droplets and resemble the asymmetric H waves in the simulations and experiments of Lawrence et al. (1998). At
$\delta =0.9$, growing interfacial waves rapidly distort into classic KH spirals within five wave periods. Several comparisons reported between the PL and the exponential profile clarify the role of background profile curvature and the critical location. To our knowledge, this is the first demonstration of three canonical instabilities, within these background states and without usage of the Boussinesq approximation.