Incremental Sheet Forming (ISF) is emerging as one of the popular dieless forming processes for the small-sized batch production of sheet metal components. However, the parts formed by the ISF process suffer from poor surface finish, geometric inaccuracy, and non-uniform thinning, which leads to poor part characteristics. Hammering, on the other hand, plays an important role in relieving residual stresses, and thus enhances the material properties through a change in grain structure. A few studies based on shot peening, one of the types of hammering operation, revealed that shot peening can produce nanostructure surfaces with different characteristics. This paper introduces a novel process, named the Incremental Sheet Hammering (ISH) process, i.e., integration of incremental sheet forming (ISF) process and hammering to improve the efficacy of the ISF process. Controlled hammering in the ISF process causes an alternating motion at the tool-sheet interface in the local deformation zone. This motion leads to enhanced material flow and subsequent improvement in the surface finish. Typical toolpath strategies are incorporated to impart the tool movement. The mechanics of the process is further explored through explicit-dynamic numerical models and experimental investigations on 1 mm thick AA1050 sheets. The varying wall angle truncated cone (VWATC) and constant wall angle truncated cone (CWATC) test geometries are identified to compare the ISF and ISH processes. The results indicate that the formability is improved in terms of wall angle, forming depth and forming limits. Further, ISF and ISH processes are compared based on the numerical and experimental results. The indicative statistical analysis is performed which shows that the ISH process would lead to an overall 10.99% improvement in the quality of the parts primarily in the surface finish and forming forces.