The exploitation of shale gas has increasingly become the focus of worldwide energy industry. Due to the existence of natural/hydraulic fractures, most of the shale gas reservoirs exhibit high degree of heterogeneity and complexity which leads to the stress-dependent fracture conductivity of shale gas reservoir. Discrete fracture network (DFN) model is adopted in this research since the conventional continuum model cannot meet the numerical simulation requirements of fractured shale gas reservoir. A series of experiments about the fracture properties stress-dependent have been conducted on some shale core samples, the stress-dependent fracture conductivity correlation is selected and incorporated into the mathematical model to characterize the reduction of fracture conductivity potential with the reservoir pressure drop. The DFN model is applied to a shale gas reservoir with fracture network to study the effect of the stress-dependent fracture conductivity on the shale gas well performance. The results show that the effect of fracture conductivity reduction with pressure drop on the shale gas well performance depends on both the initial fracture conductivity and matrix permeability. The complex interactions between the fracture and matrix permeability should be considered when select the appropriate size of proppants for fracturing.