In this study, the effects of corrosion and magnetization on iron (Fe) encapsulated aluminum (Al) particles were uncovered through the assistance of molecular dynamic (MD) simulations and finite element analysis (FEA). The corrosion of metal particles with two phases was designed to be surrounded by O 2 or H 2 O molecules. Next, the magnetization was simulated to be under a constant magnetic field. According to the obtained results, a portion of O 2 molecules did not react with Fe atoms. They were actually adsorbed on the particle surface and the adsorption eventually reached a saturated state. However, the saturated effect did not appear to be due to the oxidation behavior of other O 2 molecules. Both oxidation and adsorption effects released pressure on Fe atoms and caused different extents of displacements. Next, a similar saturated effect was also observed for adsorbed H 2 O molecules. At the same time, other reacted H 2 O molecules produced a significant amount of OH − and caused charge transfer from Fe atoms. Additionally, the geometrical distribution of particles' magnetic flux density and magnetization intensity were also studied.