Here, we use the theory of surface elasticity to extend the morphological instability analysis of stressed solids developed in the works of Asaro, Tiller, Grinfeld, Srolovitz and many others. Within the framework of Gurtin-Murdoch model, the surface phase is assumed to be a negligibly thin layer with the elastic properties which differ from those of the bulk material. We consider the mass transport mechanism driven by the variation of surface and bulk energy along undulated surface of stressed solid. The linearized surface evolution equation is derived in the case of plane strain conditions and describes the amplitude change of surface perturbations with time. A parametric analysis of this equation leads to the definition of critical conditions which depend on undulation wavelength, residual surface stress, applied loading, surface and bulk elastic constants and predict the surface morphological stability.