Natural fractures (NFs) have been recognized as the dominant factors that increase hydraulic fracture complexity and reservoir productivity. However, the interactions between hydraulic and natural fractures are far from being fully understood. In this study, a two-dimensional numerical model based on the displacement discontinuity method (DDM) has been developed and used to investigate the interaction between hydraulic and pre-existing natural fractures. The inelastic deformation, e.g., stick, slip and separation, of the geologic discontinuities is captured by a special friction joint element called Mohr-Coulomb joint element. The dynamic stress transfer mechanisms between the two fracture systems and the possible location of secondary tensile fracture that reinitiates along the opposite sides of the NF are discussed. Furthermore, the model results are validated by a series of large tri-axial hydraulic fracture (HF) tests. Both experimental and numerical results showed that the displacements and stresses along the NFs are all in highly dynamic changes. When the HF is approaching the NF, the HF tip can exert remote compressional and shear stresses on the NF interface, which results in the debonding of the NF. The location and value of the evoked stress is a function of the far-field horizontal differential stress, inclination angle of the NF, and the net pressure used in fracturing. For a small approaching angle, the stress peak is located farther away from the intersection point, so an offset fracture is more likely to be generated. The cemented strength of the NF also has an important influence on the interaction mechanism. Weakly bonded NF surfaces increase the occurrence of a shear slippage, but for a moderate strength NF, the hybrid failure model with both tensile and shear failures, and conversion may appear.