This paper describes the droplet transfer behavior and weld formation of laser-arc hybrid welding with cable-type welding wire (CWW). The droplet transfer behavior was photographed in real time by using a high-speed camera. The effects of energy parameters on arc morphology, droplet transfer behavior and weld formation were studied through experimental and theoretical analyses. The results show that the arc is deflected toward the laser direction, and the deflection degree increases with increasing laser power. The interaction between the laser and arc is enhanced by rotating the arc. The rotating arc enhances the interaction between plasma, the arc is more compressed and the arc volume is smaller as the welding current increases. The droplet transfer frequency increased with increasing laser power and decreased after reaching the critical value. The reaction force of metal vapor and electromagnetic force affect the droplet transfer frequency, and the maximum frequency of droplet transfer is 180.8 Hz under a laser power of 2.5 kW. The rotational force promotes molten droplet transfer and maintains the axial transition, and the welding current has a strong effect on increasing the droplet transfer frequency. The influence of laser power on weld penetration is greater than that of welding current, the weld penetration increases significantly with increasing laser power, and the cross section of the weld seam exhibits laser-arc hybrid welding characteristics.