Interspecific hybridization of oysters is a highly efficient breeding strategy that can produce commercially viable phenotypes. Crassostrea hongkongensis, the primary cultivar in southern China, faces increasing summer mortality risks and slow growth rates, which elevate commercial risks for farmers. C. iredalei, a commercially cultivated species in Southeast Asia, has been expanding its ecological niche northward in recent years, providing opportunities for interspecific hybridization with C. hongkongensis. This study conducted a 2 × 2 factorial cross between C. hongkongensis and C. iredalei (II: C. iredalei ♀ × C. iredalei ♂, HH: C. hongkongensis ♀ × C. hongkongensis ♂; IH: C. iredalei ♀ × C. hongkongensis ♂, HI: C. hongkongensis ♀ × C. iredalei ♂) and set up 6 salinity treatments (14, 17, 20, 23, 26 and 29 ppt) to explore the optimal salinity for embryo hatching. The results showed that the hybridization was successful, despite bidirectional fertilization and pronounced asymmetry in fertilization success. The optimal hatching salinity for C. iredalei and C. hongkongensis was 23 ppt and 17–20 ppt, respectively, while the optimal salinity for reciprocal hybrids was 20 ppt. Notably, the hatching rate of IH was lower than that of the control group at the optimal salinity. During the pelagic larval stage, hybrid larvae exhibited significant hybrid inferiority, with slower growth rates and higher mortality rates compared to intraspecific hybridization. It is worth noting that IH failed to overcome genetic incompatibility, resulting in complete mortality during the pelagic larval stage and failure to enter the growth stage. At the 360th day of the growth period, HI hybrids grown in Sanbaimen Sea exhibited significant hybrid vigor in shell height (15.65 %), and in Daya Bay Marine Biology Research Station, Chinese Academy of Sciences (MBRS), they showed significant single-parent hybrid advantages in shell height (28.44 %) and cumulative survival rate (58.11 %) compared to C. hongkongensis. In terms of gonadal development, HI hybrids were able to produce functional and viable gametes, although with some delay compared to their parents. The hybrid offspring inherited the phenotypic traits of their parents, with a grayish-yellow flesh color intermediate between the two oyster species. HI is a valuable genetic resource for oyster breeding, and its growth potential should be further explored to meet commercialization demands.