The unconsolidated sandstone is a type of rock that has poor cementation, a low strength, a high porosity, and permeability. It is highly compressible under high stress and exhibits non-linear plastic deformation during hydraulic fracturing construction in its reservoir. In this study, the mechanical properties of unconsolidated sandstone with a different permeability were studied, and a three-dimensional hydraulic fracture propagation numerical model was established based on the modified traditional Cambridge model. This model was used to simulate the fracture propagation law of unconsolidated sandstone in separate layer fracturing under different construction conditions. During hydraulic fracturing construction, the fracturing fluid slowly invades the reservoir when the displacement of the fracturing fluid is small. The unconsolidated sandstone undergoes compaction and hardening, followed by shear expansion, and then complete destruction. A larger displacement will cause the reservoir rock to directly enter the state of destruction from compaction and hardening. This study found that several critical parameters are obtained for fracturing construction. When the displacement is greater than 5 m3/min, the fracturing fluid exceeds 100 mPa·s, or when the filtration coefficient exceeds 1.2 × 10−3 m/s, the second and third layers will be penetrated. This study provides valuable insights into the mechanical properties of unconsolidated sandstone and reveals the critical parameters for the successful hydraulic fracturing construction in this type of reservoir.