The utilization of hydrogen-enriched liquefied petroleum gas (LPG) is an effective means of reducing carbon emissions, but the special physical and chemical properties of hydrogen have raised concerns among the public. To delve into the intricate chemical kinetic mechanisms governing the inhibitory effect of CO2 on the explosion of hydrogen-enriched LPG, this study systematically investigated the influence of varying CO2 concentrations (3%, 6%, and 9%) on the explosion characteristics of hydrogen-enriched LPG (hydrogen ratio ranging from 0 to 0.5) within a 20 L spherical explosion chamber. Subsequently, a chemical kinetic analysis was conducted, focusing on the explosion reaction dynamics of the H2/LPG/CO2/Air mixture, encompassing temperature sensitivity assessments and the production rates of key free radicals. The findings reveal that although hydrogen incorporation does not significantly alter the maximum explosion pressure of LPG, it markedly accelerates the explosion reaction rate, posing a challenge for CO2 in effectively inhibiting the explosion of hydrogen-enriched LPG. CO2 functions as a stabilizing third body within the reaction system, diminishing the collision frequency among free radicals, hydrogen molecules, hydrocarbon molecules, and oxygen molecules, thereby slowing down the reaction rate. As the proportion of hydrogen increases, the concentration of ·H radicals, known for their high reactivity, escalates, rapidly completing the propagation phase of the chain reaction and intensifying the overall generation rates of critical free radicals, including ·H, ·O, and ·OH. Notably, the key reaction H+O2⇋O+OH, which governs the reaction temperature, undergoes significant enhancement, further accelerating the explosion reaction rate and ultimately diminishing the inhibitory efficacy of CO2 against the hydrogenated LPG explosion. Furthermore, as the amount of hydrogen added increases, hydrogen’s competitiveness for oxygen within the reaction system markedly improves, attenuating the oxidation of hydrocarbons. Concurrently, the alkane recombination reaction, exemplified by C3H6+CH3(+M)⇋sC4H9(+M), is strengthened. These insights provide valuable understanding of the complex interactions and mechanisms during the explosion of hydrogen-enriched LPG in the presence of CO2, with implications for the safe application of hydrogen-enriched LPG.