Hydroshearing has been proposed as an effective technique for enhancing the permeability of fractured geothermal reservoirs. This approach involves complicated thermo-hydro-mechanical (THM) coupling, but the shear behaviour and its effect on flow and heat transfer are often simplified. In this study, Barton–Bandis (BB) joint behaviour is extended to include nonlinear rock joint deformation, shear dilation and post peak softening and healing behaviours. Two models of field-scale fractured geothermal reservoirs are considered. In addition, the widely used Mohr-Coulomb (MC) model is also incorporated into the THM coupled model for comparison. The results show that cold water injection-induced high-temperature rock contraction and fluid pressure increase, reducing the effective stress and promoting fracture shear deformation and irreversible slip. Moreover, shear dilation, shear softening, and nonlinear fracture opening notably alter reservoir permeability. The two models exhibit entirely different behaviours due to different pathway evolutions and consequent pressure build-up. The BB model displays a larger shear disturbance zone than the MC model, significantly enhancing the permeability and heat extraction within the fractured reservoirs. Accurate descriptions of the mechanical behaviour of rock fractures in hydroshearing models are crucial, suggesting the potential of these models to enhance fractured reservoirs and regulate fracturing for improved geothermal heat extraction.