China is rich in volcanic gas reservoirs in oil and gas basins, with great exploration potential. Volcanic gas reservoirs are widely distributed, with poor matrix property and low permeability. Due to stress sensitivity resulting from gas flowing, there is large error in conventional well testing model. Therefore, on this basis, a pseudo-homogeneous model for transient well testing in volcanic gas reservoirs is established with considering stress sensitive permeability and some parameters are redefined and adopted are such methods as Perturbation transformation technology, Laplace transformation and Stehfest numerical inversion to obtain the solutions to this model, semi-analytical solutions are deduced under such conditions as infinite boundary and closed circular boundary and typical curves of well test are obtained. On this basis, further studied is the effect of such parameters as permeability modulus of deformable media and others on pressure dynamic curves. Study results show that both of pressure curve and pressure derivative curve in well testing curves based on stress sensitivity go upwards and the pressure derivative curve goes over the 0.5 line, both of closed circular boundary and stress sensitivity can make the curve go upwards, presence of volcanic gas reservoir stress sensitivity makes gas reservoir pressure drop unstably and makes production decrease rapidly and single well control is limited. Therefore, in the process of gas reservoir exploration, horizontal well fracturing is necessary, and the original gas reservoir pressure shall be maintained in favor of longer stable exploration.