Hydraulic fracturing can effectively increase reservoir productivity, and the effect depends on proppant behavior. Crushing of proppant during fracturing induces a series of changes in fracture width and the pore space formed between proppant particles, affecting reservoir fluid flow. For exploring the flow law of oil and water in proppant fractures, the discrete element method (DEM) and Tavares crushing model were combined to simulate the proppant crush process. At the same time, based on the formed pore space, the flow law of two phase fluid under the influence of such factors as the number of proppant placement, combination of particle size, closing pressure, and particle wettability was studied by fluid volume method(VOF). A series of data obtained through simulation show that with the increase of the average particle radius of single-layer and multilayer proppant is, the fracture conductivity and fracture width increase at the same closure pressure,. In the pore space formed by surface water-wet proppant, the ability of pore to transport oil phase increases; the higher of the number of closure pressure is, the larger the ability of pore to transport oil phase is.