The partial coalescence dynamics of a compound drop in a liquid pool is numerically investigated. We study the effect of the ratio of the inner to outer radii (Rr) of the compound drop while maintaining a constant liquid volume in the outer shell of the compound droplet. It is observed that for small values of the radius ratio, the coalescence dynamics is similar to that of a 'simple' drop, but the partial coalescence is suppressed for large values of Rr. Increasing the value of Rr decreases the distance migrated by the inner bubble in the downward direction inside the pool. The location of the bubble after coalescence is found to play an important role in the pinch-off process of the satellite drop. The influence of the governing dimensionless parameters on the coalescence dynamics has also been investigated. © 2019 Cambridge University Press.