To gain a structural and thermodynamic understanding along with the interpretation of atomic diffusion in a Ni/Ti bilayer, detailed first-principles simulations using density functional theory (DFT) and molecular dynamics (MD) simulations have been carried out. The interface energies and electronic structure of the Ni/Ti bilayer have been calculated using DFT. The MD simulations of interface atomic diffusion in the Ni/Ti bilayer were performed at 773 K for different annealing times to investigate the formation of Ni–Ti alloy. The simulated results indicate that Ni atoms predominantly diffuse into the Ti side. The radial distribution functions (RDFs) have been plotted to understand the nature of bonding that exists between the Ni and Ti atoms in the bilayer. The shape of the RDFs reveals information about the extent to which Ni and Ti atoms mix together. Classical MD simulations have been used to simulate the deformation behavior of the material under tension and to investigate the effects of annealing time on the mechanical properties of the materials.