This paper studies the stability and dynamic control of underlay mobile edge networks. First, the stability region for a multiuser edge network is obtained under the assumption of full channel state information. This result provides a benchmark figure for comparing performance of the proposed algorithms. Second, a centralized joint flow control and scheduling algorithm is proposed to stabilize the queues of edge devices while respecting the average and instantaneous interference power constraints at the core access point. This algorithm is proven to converge to a utility point arbitrarily close to the maximum achievable utility within the stability region. Finally, more practical implementation issues such as distributed scheduling are examined by designing efficient scheduling algorithms taking advantage of communications diversity. The proposed distributed solutions utilize mini slots for contention resolution and achieve a certain fraction of the utility optimal point. The performance lower bounds for distributed algorithms are determined analytically. The detailed simulation study is performed to pinpoint the cost of distributed control for mobile edge networks with respect to centralized control.