Abstract: With production, fluid pressure and effective stress will be changed greatly, especially around wellbore. Then it will induce the change of link structure and damage the permeability, so the productivity of the well will be influenced. Based on the experimental research about the relation between permeability and effective stress, the numerical solution is been developed with the method of coupled fluid-solid, and of iterative calculation. It is shown by the example that this method can be used to analyze stress and permeability damage around wellbore.