The rotating particle jet cutting technology is an efficient way to deal with downhole stuck tubing efficiently in oil and gas borehole operation. To make full use of the rotating particle jet energy, a thorough understanding of the cutting process is needed. In this work, the Euler-Lagrange theory was utilized to establish the Computational Fluid Dynamics (CFD) model of tubing cutting with a rotary particle jet. A field-scale testing apparatus was developed to investigate the cutting effect achieved by rotating particle jet impact. The flow field characteristics of tubing cutting with a rotary particle jet were studied. The effects of operating parameters on the cutting efficiency were analyzed and the key cutting parameters were optimized. Validation of the theoretical model was carried out. The results show that the highest pressure is achieved when the rotating particle jet impacts the tubing wall. The average erosion rate increases with increasing standoff distance when the standoff distance is less than 7 mm. When the particle concentration is greater than 6%, the average erosion rate of tubing begins to increase slowly. The recommended particle diameter is 0.6–0.8 mm. This work can provide a theoretical foundation for field application of the rotating particle jet cutting technology.