Abstract By using pseudo-differential operators containing two derivations, we extend the Kadomtsev–Petviashvili (KP) hierarchy to a certain KP-mKP hierarchy. For the KP-mKP hierarchy, we derive its Bäcklund transformations, bilinear equations of Baker–Akhiezer functions and Hirota equations of tau functions. Moreover, we show that this hierarchy is equivalent to a subhierarchy of the dispersive Whitham hierarchy associated to the Riemann sphere with its infinity point and one movable point marked.