One of the most significant challenges in simulation technology is integrating continuous time domain models into discrete simulation frameworks or vice versa, especially when it comes to accurately representing event-driven dynamics. This study focuses on enhancing co-simulation techniques within the Functional Mock-up Interface (FMI) 3.0 framework, emphasizing the integration of event handling and intermediate update modes to bridge the gap in simulating hybrid systems that exhibit both discrete and continuous behaviours. By developing an innovative master algorithm, this research achieves synchronization across diverse simulation paradigms, thereby enabling the effective co-simulation of hybrid systems. The novel approach leverages FMI 3.0’s advanced features, such as clocks and intermediate update methods, to facilitate precise scheduling and synchronization among different models. This significantly enhances co-simulation capabilities by offering model developers the tools to construct more realistic models that closely replicate actual dynamic behaviours while minimizing unnecessary computational efforts. The results of this study contribute substantially to our understanding of co-simulation scheduling and model interactions on a systemic level. By providing a robust algorithmic solution for managing event-driven simulations, the research addresses the complex challenge of integrating disparate simulation systems, paving the way for the development of more accurate and efficient simulation frameworks. This advancement not only closes the current simulation gap for hybrid systems but also opens up new possibilities for modeling and simulation, encouraging further exploration and development in the field of simulation technology.