In order to investigate the effect of droplet impact on molten pool dynamics in hybrid laser-MIG (metal inert gas) welding, a three-dimensional mathematical model was developed, and a new approach to simulate the droplet impact was proposed. In the model, the droplet heat and impact under the influence of laser was considered, and the deformation of molten pool was calculated with considering droplet impact and arc pressure. To simplify the model, a modified body heat source model was presented for laser source to take into account multiple reflections and Fresnel absorption. Surface tension, electromagnetic force, and buoyancy were considered to calculate the fluid flow pattern. Furthermore, several dimensionless numbers were used to recognize the importance of the driving forces in molten pool. It was found that molten pool dynamics and final weld bead geometry were strongly affected by the droplet impact. To demonstrate the importance of droplet impact, the temperature, velocity distribution, and the deformation of molten pool were analyzed and compared under different conditions. With considering droplet impact, the penetration was bigger, and the width was smaller. Furthermore, the simulated weld bead geometry was in good agreement with experimental measurement.