This letter presents a novel 3-D hybrid method for instrument landing system (ILS) channel modeling, which names half space multilevel fast multipole method - parabolic equation method (HSMLFMM-PE). The multilevel fast multipole method (MLFMM) is applied to simulate the source region and near source obstacles. The large scale obstacles, pertaining to the far field region, is implemented by the parabolic equation (PE) method. The transition plane between the MLFMM region and PE region is solved by the half plane Green’s function of the MLFMM to avoid the full wave simulation of the ground, thus the computation cost can be further reduced. Experimental results demonstrate that the computation cost of half space method is lower than full space method. The HSMLFMM-PE method can simultaneously meet the requirements of high simulation accuracy and the requirements of large area radio wave propagation computation in ILS simulation.