Local interaction simulation approach (LISA) is a highly parallelizable numerical scheme for guided wave simulation in structural health monitoring (SHM). This paper addresses the issue of simulating wave propagation in unbounded domain through the implementation of non-reflective boundary (NRB) in LISA. In this study, two different categories of NRB, i.e., the non-reflective boundary condition (NRBC) and the absorbing boundary layer (ABL), have been investigated in the parallelized LISA scheme. For the implementation of NRBC, a set of general LISA equations considering the effect from boundary stress is obtained first. As a simple example, the Lysmer and Kuhlemeyer (L-K) model is applied here to demonstrate the easiness of NRBC implementation in LISA. As a representative of ABL implementation, the LISA scheme incorporating the absorbing layers with increasing damping (ALID) is also proposed, based on elasto-dynamic equations considering damping effect. Finally, an effective hybrid model combining L-K and ALID methods in LISA is developed, and guidelines for implementing the hybrid model is presented. Case studies on a three-dimensional plate model compares the performance of hybrid method to that of L-K and ALID acting independently. The simulation results demonstrate that best absorbing efficiency is achieved with the hybrid method.