Natural dams formed by landslides may produce disastrous debris flows after dam outburst. However, studies on the critical conditions required for the formation of outburst debris flow resulting from natural dam failure are still at an early stage. In this paper, we present the results of a series of laboratory tests that assessed three different materials, five different flume bed slope angles (2°, 7°, 9°, 10°, and 13°), two in-flow rates, and four types of dam geometric shapes. The results showed that the unit weight of downstream fluid increased with increasing bed channel slope. Additionally, a critical flume bed angle was found for debris flow formation. Furthermore, the combination of lake volume and flume bed angle was found to influence the formation of debris flow. A nonlinear trend was observed between the unit weights of debris flow and the uniformity coefficients of solid material. Based on the theory of stream power, a critical condition for debris flow formation from natural dam failure was established. Based on two case studies, the results indicate that the condition that was established for debris flow formation following natural dam failure agrees well with reality.