The hydro-mechanical coupling interaction of the sandstone is an essential scientific issue in geological and geotechnical fields, which always holds the key to understanding the meso-mechanism underlying the water-induced geohazards such as water inrush and piping erosion. In this study, a new fluid–solid coupled numerical method is developed by combining the finite difference method (FDM) with the discrete element method (DEM). The proposed FDM-DEM coupling method not only solves the seepage field through FDM discretization but also dynamically updates the permeability by explicitly capturing fracture initiation and propagation within sandstone. A representative case of hydro-mechanical coupling interaction of the sandstone was used to validate the accuracy of the proposed method. The effects of confining pressure and seepage pressure on the mechanical properties and permeability evolution of sandstone were evaluated by normalizing the test conditions. Moreover, the evolution laws of the fluid velocity field, particle displacement field, and fractures within the sandstone under the hydro-mechanical were discussed. The distribution characteristics of normal and tangential contact forces within the sandstone were studied. All the numerical results were in good agreement with the experimental or analytical results reported in literatures. The results of the study can provide a new insight into the meso-mechanics of complicated fluid–solid interaction in sandstone.