The molecular dynamics method was used to simulate the dynamic behavior change of atomic diffusion at interface between TiAlN coating and WC matrix in the carbide tool with TiAlN coating. It was determined that the one-way diffusion of C atom to TiAlN coating resulted in serious lattice distortion on the surface. Meanwhile, the whole diffusion process was accompanied by the continuous increase of stress, resulting in gradual deformation of the material. The interface bonding performance also decreases. Then, the surface energy and atomic layer convergence are calculated by the first-principles method. The TiAlN crystal surface is stable at 8 atomic layers, and the WC crystal surface is stable at 6 atomic layers, and then a stable microinterface model can be built. The relaxation processing for the established model was performed to determine the diffusion path of C atom. Then, the energy barrier, adhesion work, interface energy and fracture toughness of different transition state structures in the diffusion path of C atom are calculated, and it is determined that with the deepening of the diffusion of C atom in the coating, the binding ability of the interface of the coating base and the performance of the coating tool are more and more serious damage. Finally, the cutting experiment of TiAlN coated tool is designed. According to the surface topography of TiAlN coated tool in different periods, the simulation and theoretical analysis mentioned above are verified, which provides a theoretical basis for the subsequent research on improving the performance of coated tool.