Mechanical damage leads to the increase of effective stress of sediments, and pore closure hinders the discharge of methane gas. Ignoring the influence of mechanical damage leads to an excessive prediction of hydrate gas production. Therefore, a fully coupled model considering mechanical damage-chemical decomposition-gas-water two-phase seepage-temperature was developed in this study, and the model was verified by Masuda experiment. Based on the fully coupled model, the temporal and spatial evolution of the whole process of hydrate decomposition under the influence of three initial absolute permeabilities, three pressure drops and three water saturations were considered. The results showed that: • The gas production rate reached the peak value in a short time after depressurisation, and the peak value increased with the increase of the absolute initial permeability. The larger the initial absolute permeability was, the faster the damage variable reached the peak value. The porosity increased gradually before the damage variable reached its peak, and the gas flowed more easily. • When the pressure drop was low, the hydrate remained stable in solid form. As the pressure drop increased, the hydrate gradually began to decompose. The greater the pressure drop was, the faster the initial decomposition rate of the hydrate was. So the damage variable increased rapidly and the porosity increased continuously, resulting in a large gas production rate at the initial stage of decomposition. • The larger the initial water saturation was, the smaller the effective stress wss, resulting in the slow growth of the damage variable and the small change of porosity.While the gas relative permeability was small, it resulted in a smaller gas production rate, and hydrate decomposition was slower. • The damage variable showed a process of rapid growth first, then slowly increased to the peak, and then gradually decreased to a stable state. When the damage was considered, the hydrate decomposition time to the steady state was longer, and the gas production was about 80.68 per cent of that without considering the damage.