A hybrid finite-discrete element method (FEM/DEM) is introduced to model the excavation damage zone induced by blast in a deep tunnel. The key components of the hybrid finite-discrete element method, i.e. transition from continuum to discontinuum through fracture and fragmentation, and detonation-induced gas expansion and flow through fracturing rock, are introduced in detail. The stress and crack initiation and propagation of an uniaxial compression test is then modelled by the proposed method and compared with those well documented in literature to calibrate the hybrid FEM/DEM. The modelled stress-loading displacement curve presents a typical failure process of brittle materials. The calibrated method is then used to model the stress and crack initiation and propagation induced by blast for the last step of excavation in a deep tunnel. A separation contour, which connects the borehole through the radial cracks from each borehole, is observed during the excavation process. The newly formed tunnel wall is produced and the main components of excavation damage zone (EDZ) are obtained. Therefore, the proposed treatment has the capabilities of modelling blast-induced EDZ and rock failure process. It is concluded that the hybrid FEM/DEM is a valuable numerical tool for studying excavation damage zone in terms of crack initiation and propagation and stress distribution.