Coaxial pulsed plasma thrusters are well suited for microsatellites, but the discharge therein is radially nonuniform, resulting in uneven propellant ablation that ultimately degrades the thruster performance. This study investigates how the propellant surface evolves during 50 000 discharges in a coaxial pulsed plasma thruster with different outer electrode inner diameters and initial voltages, encompassing the propellant surface profile, concave depth of the propellant, and carbon deposition on the propellant surface. The results show that the propellant surface changes in real time throughout the 50 000 discharges. Increasing the outer electrode inner diameter leads to a proportional increase in the concave depth of the propellant, resulting in unstable ablation, and the increased inward concave depth increases the likelihood of discharge failure. Furthermore, increasing the initial voltage increases the energy density in a unit area of propellant, further contributing to the increase in the concave depth and discharge failure. The energy density distribution on the propellant surface is obtained via simulation, and by comparing the results with experimental data, the critical ablation threshold for the propellant is estimated as being ca. 0.7 J/mm2.