AbstractIntermetallic precipitates are widely used to tailor mechanical properties of structural alloys but are often destabilized during plastic deformation. Using atomistic simulations, we elucidate structural instability mechanisms of intermetallic precipitates associated with dislocation motion in a model system of Al₂Cu. Interaction of non-coplanar <001> dislocation dipoles during plastic deformation results in anomalous reactions—the creation of vacancies accompanied with climb and collective glide of <001> dislocation associated with the dislocation core change and atomic shuffle—accounting for structural instability in intermetallic Al₂Cu. This process is profound with decreasing separation of non-coplanar dislocations and increasing temperature and is likely to be operative in other non-cubic intermetallic compounds as well.