In this work, theoretical models have been formulated, validated, and applied to characterize the dynamic wormhole growth and propagation dynamics during CHOPS processes by integrating rate transient analysis (RTA) and a pressure-gradient-based (PGB) sand failure criterion. More specifically, a coupling fluid-solid flow model is proposed by incorporating the recently proposed PGB sand failure criterion with sand production. Then, the source function method is applied to solve the fluid flow problem in the matrix subsystem by considering each generated wormhole segment as a sink source, while the finite difference method is applied to solve the fluid-sand flow problem in the wormhole subsystem. The sand failing at each segment is induced and propagated once the PGB sand failure criterion has been reached. Furthermore, transient rate type curves are generated to determine the dynamic wormhole network conditioned to the measured fluids and sand production profiles. Also, effects of the PGB sand failure criterion and reservoir properties on the transient rate behaviour for CHOPS wells can be examined and analyzed. A gradual increase in the production rate profile occurs at the early times due to the wormhole growth and propagation. The wormhole network can be dynamically characterized by matching both the sand production rate and transient fluid production rate. The former is found to be greatly affected by the breakdown pressure gradient, while the effective wormhole coverage and intensity dominate the latter. Once the pressure responses on a static wormhole network are validated with numerical simulation, the newly proposed method has been extended to field applications under various constraints, demonstrating that the fluid and sand production data of CHOPS wells can be integrated to accurately characterize the dynamic wormhole network within a unified, consistent, and efficient framework.