The cavity formation and propagation process of stress wave from parallel hole cut blasting was simulated with ANSYS/LS-DYNA 3D nonlinear dynamic finite element software. The distribution of element plastic strain, node velocity, node time-acceleration history and the blasting cartridge volume ratio during the process were analyzed. It was found that the detonation of charged holes would cause the interaction of stress wave with the wall of uncharged holes. Initial rock cracking and displacement to neighboring uncharged holes become the main mechanism of cavity formation in early stage.