The molecular dynamics (MD) simulation method was used to explore the impact of vacancy concentration (0 at%, 0.1 at% and 0.2 at%) on the diffusion and precipitation rate of Cu atoms in the Fe-3.5Cu alloy and the growth of Cu precipitation during the aging process of the alloy. The mechanism of the influence of Cu precipitation relative to the tensile properties of Fe-3.5Cu alloy was investigated. The results showed that the presence of vacancies will promote the diffusion and precipitation of Cu atoms in the Fe-3.5Cu alloy, but the diffusion and precipitation rate of Cu atoms does not always increase with the increase in vacancies. In the alloy containing 0.2 at% vacancies, the diffusion and precipitation rate of Cu atoms is lower than that in the alloy containing 0.1 at% vacancies. During the aging process, when the alloy contains no vacancies, no Cu precipitates will be produced. In the alloy containing 0.1 at% vacancies, the size of the Cu precipitates produced is larger than the size of the Cu precipitates produced in the alloy containing 0.2 at% vacancies, but the number of precipitates is less than that in the alloy with 0.2 at% vacancies. During the tensile process, the Cu precipitates will promote early occurrence of phase transition of the internal crystal structure in the Fe-3.5Cu alloy system, and lead to the generation of vacancy defects in the system, thus weakening the yield strength and strain hardening strength of the alloy.