High pressure pulsed water jet (HPWJ) is a new technology of effectively improving coal seam permeability. However, the mechanism of increased permeability is not yet clear, which restricts the application of HPWJ in different coal seams. From the perspective of improving permeability by coal matrix shrinkage, the impelled dynamic equations is established based on analysis of coal dynamic effects by water jet. According to theoretical analysis of the stress state of coal matrix, it is concluded that HPWJ can promote coal matrix shrinkage, and the relationship equation between jet impact-coal matrix is derived. Besides, the gas seepage function in the coal slotted by the HPWJ is gained by using PM model, which provides theoretical support for generalizing the technology in the coal mine.