China consumes more than 3.6 billion tons of coal every year. In the meanwhile, coal accounts for over 60% of the energy consumption sector. Therefore, the sustainable development of coal mines is a problem that needed to be solved by the Chinese government. During the coal resources recovery process, the protective coal pillars between the adjacent working faces lead to a vast waste of coal resources. In order to mitigate the resource-wasting issue, a new technology of roof cutting with chain arm retaining roadway was put forward in this paper. First, the procedures of retaining roadway, roof-cutting parameters and the damage ranges of roadway surrounding rock induced by roof cutting with chain arm were analysed. Then, the working resistance of the temporary support equipment is given when using the new technology to retain the roadway. Next, the roof-cutting height, the temporary support equipment selection, working resistance of portal support and support parameters of the bolt and anchor cables were optimized based on the numerical calculation. The industrial experiment of retaining roadway by roof cutting with chain arm was carried out in a working face. The surrounding rock damage was lowered and controlled with the application of chain arm roof-cutting technology. Also, it was found that the variation range of the uniaxial compressive strength was only 5%, resulting in the roof damage range of 82 mm. The new technology has proved a potentially wide application in the coal mining industry with prosperous economic and safety improvement.