To investigate the stability of circular roadways under an uneven stress environment following damage, an analytical association between the stress field of the roadway surrounding rock and the unified strength theory considering damage effects was performed. Analytical expressions for the radius of the plastic zone, displacement, and stress distribution of the surrounding rock under conditions of non-uniform pressure were formulated and derived. Through specific case studies, the comprehensive impacts of the lateral pressure coefficient, intermediate principal stress, azimuthal angle, and damage characteristics on the deformation of the surrounding rock were analyzed. The findings indicate that the lateral pressure coefficient plays a critical role in shaping the geometry and dimensions of the plastic zone within the surrounding rock of the roadway. Furthermore, the variation of the plastic zone radius with the lateral pressure coefficient exhibits different patterns under varying azimuthal angles. These findings can provide targeted guidance for the form and timing of roadway support in engineering practice. Additionally, as the intermediate principal stress increases, both the radius and displacement of the plastic zone in the surrounding rock tend to decrease. Conversely, with the intensification of rock damage, the plastic zone radius and displacement both show a marked increase.