Numerically modelling the fluid flow with proppant transport and fracture propagation together 11 are one of the significant technical challenges in hydraulic fracturing of unconventional 12 hydrocarbon reservoirs. The existing models either model the proppant transport physics in 13 static predefined fracture geometry or account for the analytical models for defining the fracture 14 propagation. Furthermore, the fluid leak-off effects are usually neglected in the hydrodynamics 15 of proppant transport in the existing models. In the present paper, a dynamic and integrated 16 numerical model is determined that uses computational fluid dynamics (CFD) technique to 17 model the fluid flow with proppant transport and Extended finite element method (XFEM) to 18 model the fracture propagation. The results of fracture propagation were validated with the real 19 field results and analytical models, and the results of proppant transport are validated with the 20 experimental results. The integrated model is then used to comprehensively investigate the hydrodynamical properties that directly affect the near-wellbore stress and proppant distribution inside the fracture. The model can accurately model the proppant physics and also propose a solution to a frequent challenge faced in the petroleum industry of fracture tip screen out. Thus, using the current model allows the petroleum engineers to design the hydraulic fracturing operation successfully, model simultaneously fracture propagation and fluid flow with proppant transport and gain confidence by tracking the distribution of proppants inside the fracture accurately. Keywords Hydraulic fracturing, XFEM-based cohesive law, Computational Fluid Dynamics, Proppant transport; Fluid leak-off; Fracture propagation; Fracture tip screen-out Highlights • Proppant transport model with fluid leak-off and dynamic fracture propagation • Fluid flow modelled using CFD-DEM hybrid model and propagation using XFEM model • Results validated with real field data, analytical model and experimental study • Effect of injection rate, fluid viscosity and leak-off rate investigated • Investigated the parameters to mitigate fracture tip screen-out Graphical abstract