This paper deals with a discrete-time predator-prey system which is subject to an Allee effect on prey. We investigate the existence and uniqueness and find parametric conditions for local asymptotic stability of fixed points of the discrete dynamic system. Moreover, using bifurcation theory, it is shown that the system undergoes Neimark-Sacker bifurcation in a small neighborhood of the unique positive fixed point and an invariant circle will appear. Then the direction of bifurcation is given. Furthermore, numerical analysis is provided to illustrate the theoretical discussions with the help of Matlab packages. Thus, the main theoretical results are supported with numerical simulations.