The addition of alloying elements to the steel matrix during the preparation process can significantly affect the properties of TiC reinforced steel matrix composites. In this study, the effects of Mn on the electronic structure and crystal structure stability of Fe supercells, along with as well as the stability of the TiC/Fe(Mn) interface, were analyzed through first-principles calculations. Additionally, 8 vol% TiC/Fe–C composites were prepared through the master alloy method. The effects of Mn contents (0, 0.8, 1.2, 1.6, and 2.0 wt%) on the interface mismatch and mechanical properties of the composites were investigated. The results revealed that Mn formed a solid solution and generated a stronger Fe–Mn bond compared with the Fe–Fe bond, and no interface chemical reaction occurred. The addition of a small amount of Mn improved the interface bonding between TiC particles and the steel matrix. The TiC particles were uniformly distributed in the matrix at the grain boundaries, with only a small amount dispersed within the grains. The TiC particles and steel matrix exhibited excellent, continuous, and stable interface bonding. The addition of Mn reduced the interface mismatch between TiC particles and the matrix. As the Mn content increased, the tensile strength and elongation of the composites first increased and then decreased, while the hardness of the composites increased. The addition of 1.2 wt% Mn resulted in an increase in the tensile strength, elongation, and hardness of the composite by 1160 MPa, 7.3%, and 43 HRC, respectively. These values were 109.8%, 151.7%, and 31.1% higher than those of the composite without Mn addition. However, an excess of Mn led to severe distortion of the Fe lattice and clustering at the interface, resulting in the degradation of the mechanical properties in the composites.