The stress concentration of gob‐side entry surrounding rock is a hot topic in coal mining. In this paper, through theoretical analysis and numerical simulation, the pressure relief mechanism of the gob‐side entry retaining by roof cutting and pressure release (RCPR) and the spatiotemporal development law of surrounding rock stress of the gob‐side entry were analyzed. The studies showed that the gob‐side entry retaining by RCPR shortened the length of the lateral cantilever by directional roof cutting, which weakened the stress level of the gob‐side entry. In the meantime, the goaf gangues could play a good filling role by using their breaking and swelling characteristics under the action of gangue‐blocking supports and further optimized the stress environment along the roadway. Field industrial tests verified that the gob‐side entry retaining by RCPR had a significant effect on pressure relief, and the surrounding rock stress and deformation tended to stabilize after about 160 m of lagging working face. Numerical analysis reproduced the whole process of “mining‐retention‐using” of roof cutting roadway and revealed that surrounding rocks were always in the zone of relative stress reduction during the whole process. The peak value of mining‐induced lateral stress was about 10 m away from the middle point of the gob‐side entry. The change of surrounding rock stress could be divided into three stages: significant increase, dynamic adjustment, and stable stage. However, during the second mining, the stress connected zone would appear on the leading working face, and the stress concentration in this zone was significant. Based on the above analysis, we concluded that the new technology could be applied to the medium‐thickness coal seam in the composite roof.