The drilling of galleries induces damage propagation in the surrounding medium and creates, around them, the Excavation Damaged Zone, EDZ. The prediction of the extension and fracture structure of this zone remains a major issue especially in the context of underground nuclear waste storage. Experimental studies on geomaterials indicate that localised deformation in shear band mode usually appears prior to fractures. Thus, the excavation damaged zone can be modelled by considering the development of shear strain localisation bands. In the classical finite element framework, strain localisation suffers of a mesh-dependency problem. Therefore, an enhanced model with a regularisation method is required to correctly model the strain localisation behaviour. Among the existing methods, we choose the coupled local second gradient model. We extend it to unsaturated conditions and we include the solid grain compressibility. Furthermore, air ventilation inside underground galleries engenders a rock-atmosphere interaction that could influence the damaged zone. This interaction has to be investigated in order to predict the damaged zone behaviour. Finally, a hydro-mechanical modelling of a gallery excavation in claystone is presented and leads to a fairly good representation of the EDZ. The main objectives of this study are to model the fractures by considering shear strain localisation bands and to investigate if an isotropic model accurately reproduces the in situ measurements. The numerical results provide information about the damaged zone extension, structure and behaviour that are in very good agreement with in situ measurements and observations. For instance, the strain localisation bands develop in chevron pat-B. Pardoen * · S. Levasseur · F. Collin Université de Liège, Département ArGEnCo, Chemin des Chevreuils 1, 4000 Liège, Belgium Tel.: +32-4-3662033 E-mail: b.pardoen@ulg.ac.be * FRIA, F.R.S.-FNRS scholarship holder tern during the excavation and rock desaturation is observed close to the gallery due to air ventilation.