Intermolecular interactions and adsorbate coverage on a metal electrode's surface/interface play an important role in CO2 reduction reaction (CO2RR). Herein, the activity and selectivity of CO2RR on bimetallic electrode, where a full monoatomic Cu layer covers on Ag surface (CuML/Ag) are investigated by using density functional theory calculations. The surface geometric and electronic structure results indicate that there is high electrocatalytic activity for CO2RR on the CuML/Ag electrode. Specifically, the CuML/Ag surface can accelerate the H2O and CO2 adsorption and hydrogenation while lowering the reaction energy of the rate‐determining step. The structure parameters of chemisorbed CO2 with and without H2O demonstrate that activated H2O not only promotes the C‐O dissociation but also provides the protons required for CO2RR on the CuML/Ag electrode surface. Furthermore, the various reaction mechanism diagrams indicate that the CuML/Ag electrode has high selectivity for CO2RR, and the efficiency of products can be regulated by modulating the reaction's electric potential.