Developments of the localized hybrid method which combines an experimental technique, moire interferometry, and a numerical method, finite-element analysis, are presented. In this localized hybrid method, the displacement fields which the moire experiments provide in some local regions of interest are used as input data for finite-element stress analyses. Based on finite-element theory, several variations on this localized hybrid method, associated with different displacement boundary conditions, are developed. Applications and limitations of the localized hybrid method are discussed in detail. In particular, applications of the localized hybrid method of stress analysis are presented for three-dimensional problems in the mechanics of solids. It is shown that this localized hybrid analysis not only provides a powerful and efficient technique for the reduction of moire experimental data, but also gives a good insight into the mechanics of the experimental observations.