The extended FEM is applied to model crack growth near inclusions. A procedure to handle different propagation rates at different crack tips is presented. The examples considered investigate uniform tension as well as equibiaxial tension under plane strain conditions. A parameter study analyzes the effects on the crack path when changing the relative stiffness between inclusion and matrix material, the relative distance between initial crack and inclusion, and the size of the inclusion. Both edge cracks and internal cracks are studied. An example with an internal crack near an inclusion is presented, where both crack tips propagate at different growth rates until one crack tip eventually stops growing, as the related energy release rate drops below the critical value. In another example, only one crack tip propagates initially, but eventually, the energy release rate of the second crack tip becomes critical, and both crack tips propagate. Finally, an example of two cracks near an inclusion is presented in which up to four crack tips propagate simultaneously.