The primary and key task of binary fluid flow modeling is to track the interface with good accuracy, which is usually challenging due to the sharp-interface limit and numerical dispersion. This article concentrates on further development of the conservative Allen-Cahn equation (ACE) [Geier et al., Phys. Rev. E 91, 063309 (2015)10.1103/PhysRevE.91.063309] under the framework of the lattice Boltzmann method (LBM), with incorporation of the incompressible hydrodynamic equations [Liang et al., Phys. Rev. E 89, 053320 (2014)10.1103/PhysRevE.89.053320]. Utilizing a modified equilibrium distribution function and an additional source term, this model is capable of correctly recovering the conservative ACE through the Chapman-Enskog analysis. We also simulate four phase-tracking benchmark cases, including one three-dimensional case; all show good accuracy as well as low numerical dispersion. By coupling the incompressible hydrodynamic equations, we also simulate layered Poiseuille flow and the Rayleigh-Taylor instability, illustrating satisfying performance in dealing with complex flow problems, e.g., high viscosity ratio, high density ratio, and high Reynolds number situations. The present work provides a reliable and efficient solution for binary flow modeling.