A radial well has a unique wellbore configuration. Fracture propagation in radial well deflagration fracturing is studied rarely. The mechanism of interaction between deflagration fractures, natural fractures, and micro-fractures is still unknown. Based on continuum mechanics, damage mechanics, and variational principles, a numerical model of fracture propagation in deflagration fracturing is established with the Hamilton principle and phase-field fracture theory. The effects of horizontal principal stress difference, natural fracture distribution, and micro-fractures around the wellbore on fracture propagation in deflagration fracturing are studied. First, when no natural fractures are developed around the radial well, fractures are initiated at both ends of the radial well. Second, when there are three natural fractures around the radial well, the created fractures have the morphology of shorter fractures in the middle and longer fractures on both sides under stress interference mechanisms. Third, a larger density of natural fractures causes obvious stress superposition, changes the initiation points of radial wells and fracture morphology, and increases fracture width and reservoir stimulation volume. Fourth, as the micro-fractures increase, their interference and induction effects on deflagration fractures are enhanced gradually, and the deflection angle of fractures increases by 38.7%. The study provides a reference for optimizing deflagration fracturing in a radial well.