The nonlinear regime of the parallel velocity shear–tearing instability is studied numerically using a two-dimensional reduced, resistive magnetohydrodynamics model. In this instability, a sheared parallel velocity profile interacts with the perpendicular dynamics via the magnetic field curvature. Linearly, it has been shown [J. M. Finn, Phys. Plasmas 2, 4400 (1995)] that, in the inviscid limit, such interaction alters the classical behavior of the tearing instability, resulting in increased growth rates for classically tearing-unstable regimes (Δ′>0), and destabilizing classically tearing-stable regimes, leading to an electrostatic mode as Δ′→−∞. These trends are seen to hold with finite viscosity as long as the perpendicular plasma viscosity is of the order or smaller than the plasma resistivity. Nonlinearly, it is found that a self-consistent perpendicular shear flow and a reversed (stabilizing) density gradient develop. For favorable curvature, the latter implies an anomalous pinch effect. The shear flow generation mechanism is found, using quasilinear theory, to be related to asymmetries (tilting) introduced by the magnetic curvature coupling term. In the classically tearing-stable regime, the nonlinear behavior is very rich, including relaxation-oscillation phenomena and chaotic behavior. The potential implications of the nonlinear regime of this instability for the plasma confinement are also discussed.