The exceptional performance of GaN semiconductors in lasers, wireless communication, and energy storage systems makes them crucial for future multi-functional devices. However, during the polishing of GaN wafers, abrasive particles can induce subsurface damage, compromising device performance. This study investigates dislocation loops in GaN single crystal to understand dislocation nucleation and glide under external stress. Using nanoindentation for compressive stress, we confirmed multiple slip system activation via transmission electron microscopy after pop-in. We also performed molecular dynamics to simulate the nucleation and multiplication of U-shaped dislocation loops. Furthermore, we developed a theoretical model using Peierls–Nabarro stress to quantify GaN's critical shear stress. Raman spectroscopy was also used to analyze shear stress on U-shaped loops, supporting our model. This study provides insights into GaN dislocation dynamics under mechanical stress, aiding in wafer defect evaluation during machining and offering guidance for dislocation evolution.