This paper focuses on the use of rotary-percussive drilling for hard rocks. In order to improve efficiency and reduce costs, it is essential to understand how operational parameters, bit wear, and drilling performance are related. A model is presented therein that combines multibody dynamics and discrete element method (DEM) to investigate the influences of operational parameters and bit wear on the rate of penetration and wear characteristics. The model accurately captures the motion of the bit and recreates rock using the cutting sieving result. Field experimental results validate the rod dynamic behavior, rock recreating model, and coupling model in the simulation. The findings indicate that hammer pressure significantly influences the rate of penetration and wear depth of the bit, and there is an optimal range for economical hammer pressure. The wear coefficient has a major effect on the rate of penetration, when wear coefficient is between 1/3 and 2/3. Increasing the wear coefficient can reduce drill bit button pressure and wear depth at the same drill distance. Gauge button loss increases the rate of penetration due to higher pressure on the remaining buttons, which also accelerates destruction of the bit. Furthermore, a more evenly distributed button on the bit enhances the rate of penetration (ROP) when the same number of buttons is lost.