This research explores nonlocal problems associated with fractional diffusion equations and degenerate hyperbolic equations featuring singular coefficients in their lower-order terms. The uniqueness of the solution is established using the energy integral method, while the existence of the solution is equivalently reduced to solving Volterra integral equations of the second kind and a fractional differential equation. The study focuses on a mixed domain where the parabolic section aligns with the upper half-plane, and the hyperbolic section is bounded by two characteristics of the equation under consideration and a segment of the x-axis. By utilizing the solution representation of the fractional-order diffusion equation, a primary functional relationship is derived between the traces of the sought function on the x-axis segment from the parabolic part of the mixed domain. An explicit solution form for the modified Cauchy problem in the hyperbolic section of the mixed domain is presented. This solution, combined with the problem’s boundary condition, yields a fundamental functional relationship between the traces of the unknown function, mapped to the interval of the equation’s degeneration line. Through the conjugation condition of the problem, an equation with fractional derivatives is obtained by eliminating one unknown function from two functional relationships. The solution to this equation is explicitly formulated. For a specific solution of the proposed problem, visualizations are provided for various orders of the fractional derivative. The analysis demonstrates that the derivative order influences both the intensity of the diffusion (or subdiffusion) process and the shape of the wave front.