Given the hazards caused by drilling ground collapse (DGC) due to groundwater flow in the processes of geotechnical engineering investigation, a coupled computational fluid dynamics and discrete element method (CFD-DEM) method is adopted to numerically simulate the development of hazards. An improved coupling program is employed to realize the two-way coupling between open-source CFD code OpenFOAM and commercial DEM software PFC^3D. The coupling program allows complex meshes generated by ANSYS ICEM to be imported into PFC^3D. The feasibility and accuracy of the CFD-DEM method are first verified by simulating a single spherical particle settling in hydrostatic water and the formation of the repose angle of sandpiles. Then, this method is adopted to investigate the patterns of stratum deformation and foundation loss, typical particle flow processes, and characteristics of drilling rig toppling. Finally, measures for prevention of DGC induced by groundwater flow are discussed in detail. Two typical strata, including a water-rich sand stratum and a water-rich sand-clay compound stratum, are considered. The research results show that for the water-rich sand stratum, DGC induces a “bowl”-shaped settlement trough, and the maximum value of ground surface settlement is proportional to the foundation loss rate. For the water-rich sand-clay compound stratum, a “jar”-shaped settlement trough is created. Four typical particle flow processes are involved in DGC. The drilling rig topples toward the center of the settlement trough. The maximum displacement appears at the top of the tower and has an approximate linear correlation with the groundwater flow velocity. The measures and methods of DGC prevention are also summarized in detail. The results of this research provide a reference for hazard prevention and delicacy control of DGC induced by groundwater flow.