The low rate of penetration and short lifetime of drilling bit served as the most common problems encountered in hard formation drilling, thus leading to severe restriction of drilling efficiency in oil and gas reservoir. This study developed a new local impact drilling method to enhance hard formation drilling efficiency. The limitation length formulas of radial/lateral cracks under static indentation and dynamic impact are derived based on the experimental research of Marshall D.B considering the mud column pressure and confining pressure. The local impact rock breaking simulation model is conducted to investigate its ROP raising effect. The results demonstrate that the length of radial/lateral cracks will increase as the decrease of mud pressure and confining pressure, and the local impact can result in a damage zone round the impact crater which helps the rock cutting, thus leading to the ROP increase. The numerical results also demonstrate the advantages of local impact method for raising ROP and the vibration reduction of bit in hard formation drilling. This study has shown that the local impact method can help raising the ROP and vibration reduction of bit, and it may be applied in drilling engineering.