The numerical controlled oscillator has wide application in radar, digital receiver, and software radio system. Firstly, this paper introduces the traditional CORDIC algorithm. Then in order to improve computing speed and save resources, this paper proposes a kind of hybrid CORDIC algorithm based on phase rotation estimation applied in numerical controlled oscillator (NCO). Through estimating the direction of part phase rotation, the algorithm reduces part phase rotation and add-subtract unit, so that it decreases delay. Furthermore, the paper simulates and implements the numerical controlled oscillator by Quartus II software and Modelsim software. Finally, simulation results indicate that the improvement over traditional CORDIC algorithm is achieved in terms of ease of computation, resource utilization, and computing speed/delay while maintaining the precision. It is suitable for high speed and precision digital modulation and demodulation.