We formulate a mathematical model of functional partial differential equations for oncolytic virotherapy which incorporates virus diffusivity, tumor cell diffusion, and the viral lytic cycle based on a basic oncolytic virus dynamics model. We conduct a detailed analysis for the dynamics of the model and carry out numerical simulations to demonstrate our analytic results. Particularly, we establish the positive invariant domain for the [Formula: see text] limit set of the system and show that the model has three spatially homogenous equilibriums solutions. We prove that the spatially uniform virus-free steady state is globally asymptotically stable for any viral lytic period delay and diffusion coefficients of tumor cells and viruses when the viral burst size is smaller than a critical value. We obtain the conditions, for example the ratio of virus diffusion coefficient to that of tumor cells is greater than a value and the viral lytic cycle, is greater than a critical value, under which the spatially uniform positive steady state is locally asymptotically stable. We also obtain conditions under which the system undergoes Hopf bifurcations, and stable periodic solutions occur. We point out medical implications of our results which are difficult to obtain from models without combining diffusive properties of viruses and tumor cells with viral lytic cycles.