This paper describes a new methodology of deriving innovative hybrid designs using shape grammars of heterogeneous designs. The method is detailed within three phases of shape grammars: analysis, synthesis and evaluation. In the analysis phase, the research suggests that original rules of each design component are grouped in subclass rule sets to facilitate rule choices. Additionally, adding new hybrid rules to original rules expands the options available to the grammar user. In the synthesis phase, the research adopts state labels and markers to drive the design generation. The former is implemented with a user guide grammar to ensure hybridity in the generated design, while the latter aims to ensure feasible designs. Lastly evaluation criteria are added to measure the degree of innovation of the hybrid designs. This paper describes the derivation of hybrid minaret designs from a corpus of heterogeneous traditional minaret designs.