Abstract: Axial and torsional impact drilling technology is used to improve the drilling efficiency of hard rock formation in the deep underground. Still, the corresponding theory is not mature, and there are few correlative research reports on the rock-breaking mechanism of axial and torsional coupled impact drilling tools. Considering the influence of the impact hammer geometry and movement on the dynamic load parameters (i.e., wavelength, amplitude, frequency, and phase difference), a numerical model that includes a hard formation and single polycrystalline diamond compact cutter was established. The Riedel-Hiermaier-Thoma model, which considers the dynamic damage and strength behavior of rocks, was adopted to analyze the rock damage under axial and torsional impact loads. The numerical simulation results were verified by the experimental results. It was found that compared with conventional drilling, the penetration depths of axial, torsional, and axial-torsional coupled impact drilling increased by 31.3%, 5.6%, and 34.7%, respectively. Increasing the wavelength and amplitude of the axial impact stress wave improved the penetration depth. When the bit rotation speed remained unchanged, increasing the frequency in the axial and circumferential directions had little effect on the penetration depth. However, as the frequency increased, the cutting surface became increasingly smooth, which reduced the occurrence of bit vibration. When the phase difference between the axial and circumferential stress waves was 25%, the penetration depth significantly increased. In addition, the bit vibration problem can be effectively reduced. Finally, the adjustment of engineering and tool structure parameters is proposed to optimize the efficiency of the axial-torsional coupled impact drilling tool.