Al-Cu alloys are extensively used in automobile and aircraft industries due to their high specific strength as well as corrosion resistance properties. The strengthening mechanism which is prominent in these alloys is precipitation hardening which is very much dependent upon the shape and size distribution of precipitates along with the behavior in presence of dislocation motion. In this study, the microstructure evolution of θ’ precipitate in FCC matrix of Al-Cu system is analyzed. The CALPHAD technique is integrated to obtain the free energy data as well as equilibrium composition. It is observed that introducing interfacial anisotropy along with elastic anisotropy in the model results in needle shaped precipitates of different variants, which is in good agreement with the experimentally obtained microstructure. Particle size and shape distribution is studied which is found to be following Lifshitz–Slyozov–Wagnerdistribution type of distribution. To understand the interaction of dislocations with precipitates, dislocation dynamics model is also incorporated with the phase field results which helps in understanding the mechanical behavior of the Al-Cu alloy system. The critical shear stress value is also found for different microstructures which follows the analytical results.