Hydraulic fracturing has gained escalating significance in recovering unconventional reservoirs. However, the failure mechanism and its evolution with progressive fluid injection are not fully understood for granitic materials. To investigate, triaxial hydraulic fracturing on Harcourt granite and acoustic emission (AE) monitoring was performed by the self-developed multi-physical rock testing platform (MRTP). Source mechanism analysis suggests that tensile cracks account for the majority (62%) of all cracks throughout the hydraulic fracturing process. Tensile cracks with large energy are induced mainly around the borehole bottom, but their average energy is smaller than shear cracks. The entire hydraulic fracturing process is divided into three stages by injection measurements. In Stage 1, AE events are recorded with low energy emissions but high signal-to-noise ratios, revealing the initiation of hydraulic fractures before peak injection pressure. Tensile cracks are more dominant (78%) than other stages. In Stage 2, the number and magnitude of AE events increase exponentially along the trace formed in Stage 1. In Stage 3, hydraulic fractures have the largest magnitude among all stages. Shear cracks are nearly the same proportion as Stage 2, but more shear cracks with large magnitudes are observed following the trace formed by tensile cracks. A dense population of shear cracks can be found at the borehole bottom, and their distribution follows the average slip plunge of individual shear cracks induced by the injection fluid.