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This paper introduces the development of a new predictive model in support of proppant injection in naturally fractured coal seam gas (CSG) reservoirs. In the proposed model, the finite element method (FEM) is used for the prediction of proppant embedment and elastoplastic deformation of the coal. The lattice Boltzmann method (LBM) is applied to the modelling of fluid flow through propped fractures, in which the modified partially saturated method (MPSM) is implemented to characterise the fluid–solid interactions. Permeability diagrams of the fractures are then generated as functions of particle packing ratio and effective stress. Finally, these results are incorporated into a radial Darcy flow analytical solution to predict the productivity index of the CSG wells under various proppant injection pressures and cleat compressibilities. The developed model is applied to selected coal samples from the Bowen and Surat Basins in Queensland, Australia. Modelling results indicate that proppant injection leads to increased fracture permeabilities and enhanced well productivity indexes. The elastoplastic deformation results in smaller permeability increase and less production enhancement when compared to the traditional linear elastic models. Although focused on Australian coals, the developed workflow can be broadly applicable to the assessment of potential stimulation efficacy in other unconventional reservoirs. In addition, a better understanding and implementation of the proppant injection scheme can effectively improve the post-fracturing performance, particularly in low-permeability coal intervals, which benefits the CSG industry. • Elastoplasticity is incorporated into computational models of proppant embedment. • The deformation of idealised coal cleats is assessed for residual permeability. • Optimal monolayer packing is determined for selected Bowen and Surat Basin coals. • Resulting fracture permeaibilities used in well productivity sensitivity analyses. [ABSTRACT FROM AUTHOR]