O2/H2O combustion technology, as the next generation of oxy-fuel combustion technology with great potential, can greatly increase the utilization rate of clean energy CH4. In this paper, the natural gas combustion process under 6 operating conditions of O2/H2O atmosphere and O2/FH2O atmosphere is numerically simulated. The horizontal analysis is carried out on the characteristics of H2O fraction, CO2 volume fraction and the amount of pollutants (NOx, carbon black), and in-depth exploration of the content of additive H2O and the influence of chemical action on the above characteristics. The research results show that the chemical effects of H2O have a negative effect on combustion temperature, and the physical effects are dominant. The chemical effects of H2O have a great impact on CO production and little effect on the production of CO when the proportion of H2O is 65-79%. The chemical effects of H2O inhibit the formation of NOx and carbon black when the proportion of H2O is within the range of 55-70%. The chemical effect has the greatest impact on the formation of dyes (NOx, carbon black) when the proportion of H2O is within the range of 65-70%.