First principles calculation reveals that the Mo–W interface dipole is formed due to an equal loss of electrons of interface atoms, and the interface formation is energetically unfavorable with positive interface energy, signifying a tendency of phase separation of Mo and W atoms. Calculation also shows that Mo surface segregation has an important effect in reducing the work function of Mo–W alloys, and that after Mo surface segregation, the Mo–W work function becomes relatively stable when W is between 0–70at.%. Interestingly, such a composition range seems good for work function modulation of metal gate Mo–W system.