Despite their extremely high thermal conductivity and low thermal expansion coefficients, thermal effects in diamond are still observed in high-power diamond Raman lasers, which proposes a challenge to their power scaling. Here, the dynamics of temperature gradient and stress distribution in the diamond are numerically simulated under different pump conditions. With a pump radius of 100 μm and an absorption power of up to 200 W (corresponding to the output power in kilowatt level), the establishment period of thermal steady-state in a millimeter diamond is only 50 μs, with the overall thermal-induced deformation of the diamond being less than 2.5 μm. The relationship between the deformation of diamond and the stability of the Raman cavity is also studied. These results provide a method to better optimize the diamond Raman laser performance at output powers up to kilowatt-level.