To address the frequent occurrence of rock burst disasters in areas with wide coal pillars during mining in the western mining area of China, the wide coal pillar area of the Tingnan coal mine in Shanxi Province was used as the research background. Theoretical analysis, numerical simulation, and field tests were used to establish the mechanical criterion and the energy criterion for the dynamic instability of wide coal pillars. The process and mechanism of wide coal pillar dynamic instability under dynamic and static load disturbances were revealed, and a wide coal pillar rock burst prevention and control scheme was proposed. The results indicated that when the load above a coal pillar reached the stress failure index and the energy failure index was met, the coal pillar reached the critical conditions for rock burst. With increasing static load, the stress, energy, and range of the plastic zone all showed increasing trends on both sides of the coal pillar. Under a given dynamic load, the stress and plastic zone range of the coal pillar significantly increased compared to those without a dynamic load. Under a given static load, the greater the dynamic load, the more likely the coal pillar was to undergo dynamic instability. The evolution of coal pillar dynamic instability was divided into three stages: energy accumulation, local instability, and dynamic instability. When the critical stress and energy conditions for coal pillar dynamic instability are exceeded, rock burst will occur. To reduce the static and dynamic loads of coal pillars, a rock burst prevention and control scheme of energy release and load reduction was proposed and applied onsite. The monitoring results showed that this control plan effectively reduced the stress of the coal pillar and the dynamic load generated by the fracture of the overlying rock layer, indicating safe mining in this area of wide coal pillars.