Carbonated water has proven advantages over conventional CO2 injection in terms of arresting free CO2 mobility, low-pressure injection, lower volume requirement, and higher efficiency. The term “engineered water” is designated to selective ion-spiked injection water with the advantage of the ion-exchange reactions with the rock minerals and releasing trapped oil. This article investigated the synergic effect of dissolved CO2 and engineered water for oil recovery and understanding inner mechanisms. Recovery efficiencies were evaluated through coreflood studies, which revealed that the hybrid water could recover 6–10% more oil than engineered water and about 3% more than carbonated water. HP-HT pendant-drop studies show the insignificance of IFT reduction. Wettability change from oil wet to near-water wet is attributed as a significant factor. The dissolution of Ca2+ and Mg2+ and deposition of SO42− observed in coreflooding may have a significant contribution to oil recovery. Pore enlargement evidenced in NMR-PSD and NMR-ICP results support this claim. The study confirmed that the EWI-CWI hybrid technique could be a promising EOR method, eliminating the requirement for high-pressure injection, the problems of gravity segregation, and the early breakthrough of CO2. It can also be an effective EOR solution, providing a significant cost advantage and higher oil recovery in addition to the environmental benefits of CO2 sequestration.