Heterogeneous cloud radio access network (H‐CRAN) is introduced as a novel network architecture that takes the full rewards of both heterogeneous cellular network (HCNs) and cloud radio access network (CRAN). In H‐CRAN architecture, the remote radio heads of small cells (SCs) are overlaid within the coverage of macro cell and linked to the baseband unit pool through nonideal fronthaul connections. To improve the spectral efficiency of this network, the SCs are developed to reuse the same resources used by the macro cell. However, this will introduce inter‐tier interference between macro cell and SCs and intra‐tier interference among SCs that need to be efficiently managed. In this paper, the joint problem of radio resource and power allocation in H‐CRAN is formulated using cooperative Nash bargaining game. This optimization problem is designed to maximize the total throughput of SCs, while considering the fairness between user equipments (UEs) in each SC, interference protection requirements for macro UEs, outage probability requirements, and the capacity limitation of nonideal fronthaul connections. Then, by using Lagrangian dual decomposition, the near‐optimal bargaining allocation strategy for radio resources and power of each SC UE is determined. Simulation results illustrate that the performance of the suggested algorithm outperforms the other comparable algorithm in terms of the SCs' achieved throughput and fairness. Moreover, the effect of nonideal fronthaul capacity constraint and the interference protection limit of macro UEs on the performance of the suggested scheme are examined.