Based on experimental results in which VH0.81/MgH2 interface was found during the process of mechanically milling MgH2+5at%V nanocomposite, a VH/MgH2 interface is designed and constituted in this work. A first-principles plane-wave pseudopotential method based on Density Functional Theory (DFT) has been used to investigate the vanadium alloying effects on the dehydrogenating properties of magnesium hydride, i.e., MgH2. A low absolute value of the negative heat of formation of VH/MgH2 interface compared with that of MgH2 indicates that vanadium hydrides befit to improve the dehydrogenating properties of MgH2. Based on the analysis of the density of states (DOS) and the total valence electron density distribution of MgH2 before and after V alloying, it was found that the improvement of the dehydrogenating properties of MgH2 caused by V alloying originates from the increasing of the valence electrons at Fermi level (EF) and the decreasing of the HOMO-LUMO gap (△EH-L) after V alloying. The catalysis effect of V on dehydrogenating kinetics of MgH2 may attribute to a stronger bonding between V and H atoms than that between Mg and H atoms, which leads to nucleation of the α-Mg at the VH/MgH2 interface in the MgH2-V systems easier than that in pure MgH2 phase.