The construction of tunnels beneath mined-out coal seam disturbs the stratum nearby and influences the stability of surrounding rocks and primary support. Similar indoor model tests were carried out to simulate the excavation of tunnels beneath inclined mined-out thin coal seam. Benching method and side heading method were compared on the basis of the measured data such as subsidence of mined-out coal seam, internal force of primary support and so on. The test results indicate that excavation method has a significant effect on the subsidence of mined-out area. Benching method leads to bigger subsidence than the side heading method, which has a deeper and wider subsidence trough. In both methods, the biggest surrounding rock pressure are located in right arch foot, the biggest bending moment in the arch foot and axial force of the steel frame on the haunch or spandrel. Under the same condition, surrounding rocks pressure, internal force and the eccentricity of steel frame measured in side heading method are generally greater than those in benching method. Although side heading method can reduce the disturbance of surrounding rocks, the primary support of the tunnel should be strengthened to ensure the stability of surrounding rocks and the structure.