Cooperative utilization of PDC drill bit and PDM ( short for Positive Displacement Motor) shows good ROP ( short for rate of penetration) increasing effect. Since it mainly relies on shearing action to break the rock, ROP improvement is not ideal when drilling in medium hard and above formations. Therefore, in this article, a rotary percussion PDM drilling tool is developed, which improves drill bit’ s work state and drilling efficiency, forming rotary percussion drilling technology. Results of tool power output performance parameter test and impact test show that tool’ s zero load pressure drop is 4. 2 MPa, and that overall power output performance parameters meet requirements of field work condition of compound drilling. Field trial results show that ROP is more than three times compared with conventional drilling in the same formation. The successful development of rotary percussion PDM imposes positive influence on oilfield exploration & development acceleration and drilling cost reduction.