Some coal seam is well known for its three low characteristics: low permeability, low reservoir pressure and low gas saturation. Thus stimulation measures must be taken during coalbed methane development stage to enhance its recovery. Hydraulic fracturing transformation technology is an effective method for increasing coalbed methane production. This paper presents a two-phase, 3D flow and hydraulic fracturing model of dual-porosity media based on the theories of oil-gas geology and mechanics of flow through porous media. Correspondingly, a finite difference numerical model has been developed and applied successfully to a coalbed methane reservoir. Well test data from one western China basin is utilized for simulation. Results show that hydraulic fracturing promotes desorption and diffusion of coalbed methane which in turn substantially increases production of coalbed methane. (C) 2014 Elsevier Ltd. All rights reserved.