Air DTH (Down-The-Hole) hammer percussion drilling (vibration percussion drilling) has proven to be a highly efficient geothermal drilling technique, and percussion fractures near the wellbore benefit geothermal energy development in many ways (such as hydraulic fracturing, perforation, etc.). However, no research has been done on the mechanism of fracture-increasing and permeation-increasing in granite pore walls by air DTH hammer percussion drilling. This article: (1) using an air drilling test device, an air DTH hammer whole bit impact rock fragmentation test was conducted on granite in an atmospheric environment; (2) dyeing experiments, CT scanning, and 3D reconstruction modeling were used to characterize and identify wellbore cracks; (3) research the strength, porosity, and permeability changes of granite wellbore through mechanical and permeability testing experiments; and (4) numerical simulation of impact stress waves using particle flow code (PFC) 6.0 software to demonstrate the rationality of impact experimental results. The results show that the air DTH hammer impact can induce micro-cracks in the wellbore, and the distribution of cracks is regionalized, mainly due to the attenuation of the impact stress wave. The numerical results are consistent with the experimental results. The average strength of granite decreased by 16.5%, the average porosity increased by 9.5%, the average permeability increased by 63.3%, the porosity increased from 0.0025% to 0.03%, and the porosity increased by about 12 times under the air DTH Hammer percussion drilling. The above results provide the theoretical basis and experimental proof for the ability of air DTH hammer drilling to produce wellbore cracks and improve wellbore permeability. The presented experimental results can be a useful reference for building numerical models.