The pyramid wavefront sensor (PWFS) can provide high sensitivity in demanding adaptive optics applications. However, its exquisite sensitivity has a limited dynamic range, which relies on the use of beam modulation to improve the dynamic range of the PWFS—despite this task being achieved by moving optical components in the PWFS, increasing the complexity of the system. An attractive idea to simplify the optical and mechanical design of a PWFS is to work without any dynamic modulation. This paper proposes a new method, to the best of our knowledge, called the pyramid wavefront sensor with truncated axicon (TA-PWFS), which is used in the non-modulated PWFS in the closed-loop adaptive optics system with high sensitivity and high dynamic range without the need for cumbersome modulation. The new approach uses a diffractive element placed at a conjugated Fourier plane of the pyramid prism to shape part of the incident light in a ring pattern around the pyramid pin. The radius of the circular-shaped image is identical to that of the modulation radius in the sinusoidal modulation, offering a high dynamic range, while the remaining portion of the light continues un-diffracted, producing high sensitivity through a spot on the pyramid pin. Simulation results with different kinds of aberrations containing large global tilts reveal that the use of the TA-PWFS has a noticeable improvement in the aberration estimation performance. With a highly simplified structure, elements without mechanical modulation, and aberration reconstruction without precorrection of global tilt, the TA-PWFS could present an innovative method for the design of non-modulated pyramid wavefront sensors that can better suit the higher requirements of adaptive optics applications.