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This paper presents a hybrid method for modeling hydraulic fracture propagation in an unconventional shale formation with frictional and cemented natural fractures. The hybrid method combines two promising methods, the extended finite element method (XFEM) and the phase-field method (PFM), to solve the discontinuous and continuous hydraulic fracturing formulations, respectively. The solution strategy is tested through several numerical examples, including classical KGD hydraulic fracturing tests and the interaction between hydraulic fracture and natural fractures. Compared with PFM and XFEM, the hybrid method shows excellent computational efficiency and reliability in modeling complex fracturing behavior in shale formations, verifying the method’s robustness.