The mathematical model of composite reservoir has been widely used in well test analysis. In the process of oil recovery, due to the injection or replacement of the displacement agent, the model boundary can be moved. At present, the mathematical model of a composite reservoir with a moving boundary is less frequently studied and cannot meet industrial demand. In this paper, a mathematical model of a composite reservoir with a moving boundary is developed, with consideration of wellbore storage and skin effects. The characteristics of pressure transient in moving boundary composite reservoir are studied, and the influences of parameters, such as initial boundary radius, moving boundary velocity, skin factor, wellbore storage coefficient, diffusion coefficient ratio, and mobility ratio on pressure and production, are analyzed. The moving boundary effects are noticeable mainly in the middle and late production stages. The proposed model provides a novel theoretical basis for well test analysis in these types of reservoirs.