In this research, the failure mechanism and anomalous behavior of intact and jointed rock block having a circular tunnel under compression are studied. This was done by monitoring the progressive failure of a rock tunnel subjected to uniaxial loading. The tests were conducted in sandstone blocks and “Acoustic Emission” (AE) technique was used to identify the crack damage and other failure attributes. Three cases have been considered in the research, i.e. tunnel in the intact rock, with horizontal joints, and with vertical joint sets. Images of progressive failure, acoustic signals, and applied loads were simultaneously recorded during the test. The intact block demonstrates continuous crack generation while the block with horizontal joint set shows a stepwise cracking pattern. In the third case where the vertical joints were employed, the deformation was largely roof failure and joint perpendicular extension was dominant. The AE events show that a sudden drop and then a quiet period of seismic “Ib value” could be considered as the precursors to forecast the rockburst hazard. The paper also compares the results of the physical model test with a 2D finite element model. The compared results show good agreement between the physical and numerical models.