Silicon particles with diameters from 1.9 nm to 30 nm are embedded in a face-centered-cubic copper matrix to form nanocomposite specimens for simulation. The interfacial debonding of silicon particles from the copper matrix and the subsequent growth of nucleated voids are studied via molecular dynamics (MD). The MD results are examined from several different perspectives. The overall mechanical performance is monitored by the average stress–strain response and the accumulated porosity. The ‘relatively farthest-traveled’ atoms are identified to characterize the onset of interfacial debonding. The relative displacement field is plotted to illustrate both subsequent interfacial debonding and the growth of a nucleated void facilitated by a dislocation network. Our results indicate that the initiation of interfacial debonding is due to the accumulated surface stress if the matrix is initially dislocation-free. However, pre-existing dislocations can make a considerable difference. In either case, the dislocation emission also contributes to the subsequent debonding process. As for the size effect, the debonding of relatively larger particles causes a drop in the stress–strain curve. The volume fraction of second-phase particles is found to be more influential than the size of the simulation box on the onset of interfacial debonding. The volume fraction of second-phase particles also affects the shape of the nucleated void and, therefore, influences the stress response of the composite.