Here, we report on the development of highly overmoded structure for a millimeter-wave (MMW) extended interaction klystron (EIK). To enhance electron beam loading, a new method for designing an oversized beam tunnel in a large cavity by concentrating the axial field is demonstrated. The transmission and oscillation characteristics of the interaction circuit operating in the quasi-TM04 mode are tested by the developed mode conversion circuit. Results suggest that a five-cavity EIK based on this highly overmoded structure can achieve an output power of 289 kW at 32.92 GHz with a saturated gain of 51.6 dB by injecting a 3.3-mm-diameter electron beam with a current of 18 A. The output power exceeds 100 kW at a bandwidth of 100 MHz.