This paper explores the effects of fear and refuge in a discrete-time two species predator–prey model. The fraction of prey that seeks refuge is assumed to be proportional to the amount of predators. The local stability of the corresponding fixed points is analyzed. The conditions of flip bifurcation and Neimark–Sacker bifurcation at the positive fixed point are described. The sufficient conditions for the positive fixed point to be globally asymptotically stable are derived in this article. Utilization of hybrid control strategy stabilizes the system’s chaotic nature. Finally, the paper supports the theoretical analysis with a numerical simulation that demonstrates the intricate nature of the system. It is observed that both fear effect and prey refuge can destabilize or stabilize the system depending on the value of handling time. Also, fear effect can restore stability in the system that exhibits chaos due to a high prey growth rate.