In this study, we use molecular dynamics to simulate the deformation of Cu–Ag nanocomposite under the coupled thermal-mechanical shock. We compare the dislocation evolution under different loading conditions by changing the strain rate and the heating rate applied to the nanocomposite. The result indicates that for a given strain rate with increasing heating rates, the dislocation density decreases, and so does the interaction between dislocations. The resistance encountered by the dislocation movement decreases as the dislocation movement mode shifts from dislocation slip to climb. The plastic deformation mechanism transforms from dislocation movement to the amorphization of the whole composite, resulting in the disruption of the interfacial dislocation network. These factors conspire to cause a reduction in yield stress. For a given heating rate with increasing strain rates, owing to the strain rate effect and the temperature difference during the deformation process, the yield stress increase. We can conclude that due to the difference in dislocation density, dislocation movement mode, and the plastic deformation mechanism, the dislocation nucleation stress and the yield stress of composite decrease with the strain rate decreases and the heating rate increases (which involves the effect of temperature difference).