In this paper we consider the attainability of the optimal constant S(N, p, s, mu) associated to the fractional Hardy -Sob olev type embedding which is defined as S(N, p, s, mu) := inf(u is an element of) W(center dot)s,p(RN)\{0}ff|u(x)-u(y)|p|x-y|N+psdxdy - mu f|u|p RN RN RN |x|ps dx ( fRN |u|p(s)& lowast; dx p p & lowast;s , where s is an element of (0, 1), p > 1 and N > ps, 0 <= mu < <mu>H, the latter being the best constant in the fractional Hardy inequality on RN, p(s)& lowast; = Np N-p(s) is the fractional critical Sobolev exponent. The technique that we use to prove the existence of extremals for S(N, p, s, mu) is based on blow-up analysis argument combined with a variational method. Further, as an application of the inequality, we prove an existence result for the critical fractional p -Laplacian equation with Hardy potential and involving continuous nonlinearities having quasicritical growth.