Induced seismicity triggered during hydraulic fracturing for shale gas exploitation in the Sichuan Basin has aroused wide public concern with these earthquakes closely correlated with the reactivation of faults within the reservoir. The target shale reservoirs in the Sichuan Bain are currently located in the Longmaxi formation. To explore instability on these faults, we conducted shear experiments on simulated fault gouges under hydrothermal conditions to assess frictional stability and also evaluated the stress perturbations resulting from multistage hydraulic fracturing. Experimental results show that the frictional instability on these faults is primarily controlled by both mineral composition and the applied temperatures. With a decrease in the contents of phyllosilicate minerals or an increase in applied temperatures, the shale faults exhibit a transition from velocity-strengthening to velocity-weakening behaviour, indicating the potential for unstable fault slip. The stress perturbations resulting from multistage hydraulic fracturing were calculated from a dislocation model of the fluid-driven fracture. These results show that the stress changes resulting from multistage hydraulic fracturing are sufficient to reactivate adjacent unstable faults in the shale reservoir and trigger the seismicity. Our experimental and modelling results highlight the importance of shale composition, temperature, and stress perturbations on shale fault stability. These results have significant implications for understanding the shale fault instability and the potential triggering of induced seismicity during hydraulic fracturing in the Sichuan Basin.