Abstract: To simulate fracture propagation and proppant transport during hydraulic fracturing, a two-dimensional fracture propagation model was established based on the displacement discontinuity method. By incorporating a two-layer proppant transport model consisting of a suspension layer and a bed layer, a numerical simulation method for hydraulic fracture propagation considering proppant transport and placement was developed. The model comprehensively accounts for intra-fracture flow, fluid leak-off, proppant settling and bed formation, bed erosion, and perforation flow, and is solved using explicit RKL integration combined with a sequential coupling strategy. The accuracy of the model in simulating fracture propagation was verified by comparison with analytical solutions. In addition, the applicability and reliability of the model in predicting proppant transport and bed evolution were validated. The effects of fracture height, fracturing-fluid viscosity, leak-off coefficient, elastic modulus, and proppant concentration on fracture propagation, proppant transport, and proppant placement were analyzed. The results show that increases in fracture height and leak-off coefficient reduce the maximum fracture width and effective propagation length, while promoting proppant settling and bed formation. An increase in fracturing-fluid viscosity enhances proppant-carrying capacity and suppresses bed development. A higher elastic modulus facilitates fracture extension toward the distal region, while variations in proppant concentration affect the morphology of the proppant bed. Fracture propagation influences proppant transport and placement by altering fracture geometry, whereas the development of the proppant bed further affects the flow space within the fracture and the effective propped region. Therefore, the optimization of fracturing parameters should comprehensively consider fracture geometry as well as proppant transport and placement behavior.