Consider the inverse acoustic scattering of time-harmonic point sources by a locally perturbed interface with bounded obstacles embedded in the lower half-space. A Newton-type iterative method is proposed to simultaneously reconstruct the locally rough interface and embedded obstacles by taking partial near-field measurements in the upper half-space. The method relies on a differentiability analysis of the scattering problem with respect to the locally rough interface and the embedded obstacle, which is established by introducing a kind of new shape derivatives and reducing the original model to an equivalent system of integral equations defined in a bounded domain. With a slight modification, the inversion method can be easily generalized to reconstruct local perturbations of a global rough interface. Finally, numerical results are presented to illustrate the effectiveness of the inversion method with the multi-frequency data.