The fluid-structure interaction in collapsible thin-walled vessels is an important topic of research to better understand the physical mechanisms behind many physiological processes and diseases. In this work, we established an experimental setup to study the collapsible tube deformation and fluid-structure interaction within a thin-walled collapsible vessel. The effects of transmural pressure and flow rate were characterized experimentally using high-frequency pressure transducers and optical measurements. Various transmural pressures were also simulated through finite element analysis. Results suggest that the deformation of thin-wall vessel follows the pattern described by Shapiro’s tube law. The collapsed pattern and cross-sectional area changes with different transmural pressure and flow pressure gradients. Below a certain negative transmural pressure threshold, we observed self-induced oscillations whose frequency and magnitude are functions of flow rates. The critical non-dimensional parameter thresholds for self-induced oscillation and the related fluid flow behaviors were examined using Particle Image Velocimetry.