The Discrete element method (DEM) is a robust numerical tool for simulating crack propagation and wear in granular materials. However, the computational cost associated with DEM hinders its applicability to large domains. To address this limitation, we employ DEM to model regions experiencing crack propagation and wear, and utilize the finite element method (FEM) to model regions experiencing small deformation, thus reducing the computational burden. The two domains are linked using a FEM–DEM coupling, which considers an overlapping region where the deformation of the two domains is reconciled. We employ a “strong coupling” formulation, in which each DEM particle in the overlapping region is constrained to an equivalent position obtained by nodal interpolation in the finite element. While the coupling method has been proved capable of handling propagation of small-amplitude waves between domains, we examine in this paper its accuracy to efficiently model for material failure events. We investigate two cases of material failure in the DEM region: the first one involves mode I crack propagation, and the second one focuses on rough surfaces’ shearing leading to debris creation. For each, we consider several DEM domain sizes, representing different distances between the coupling region and the DEM undergoing inelasticity and fracture. The accuracy of the coupling approach is evaluated by comparing it with a pure DEM simulation, and the results demonstrate its effectiveness in accurately capturing the behavior of the pure DEM, regardless of the placement of the coupling region.