Recent advances in long-context language models (LCLMs), designed to handle extremely long contexts, primarily focus on utilizing external contextual information, often leaving the influence of language models' parametric knowledge underexplored. In this work, we firstly investigate how this parametric knowledge affects content generation and demonstrate that its impact becomes increasingly pronounced as context length extends. Furthermore, we show that the model's ability to utilize parametric knowledge, which we call parametric recall ability, does not improve simultaneously with its ability to leverage contextual knowledge through extrinsic retrieval ability. Moreover, better extrinsic retrieval ability can interfere with the model's parametric recall ability, limiting its full potential. To bridge this gap, we design a simple yet effective Hybrid Needle-in-a-Haystack test that evaluates models based on their capabilities across both abilities, rather than solely emphasizing extrinsic retrieval ability. Our experimental results reveal that Qwen-2.5 models significantly outperform Llama-3.1 models, demonstrating superior potential to combine various abilities. Moreover, even the more powerful Llama-3.1-70B-Instruct model fails to exhibit better performance, highlighting the importance of evaluating models from a dual-ability perspective.