The dynamics of interacting dark energy model in loop quantum cosmology (LQC) is studied in this paper. The dark energy has a constant equation of state $w_x$ and interacts with dark matter through a form $3cH(rho_x+rho_m)$. We find for quintessence model ($w_x>-1$) the cosmological evolution in LQC is the same as that in classical Einstein cosmology; whereas for phantom dark energy ($w_x<-1$), although there are the same critical points in LQC and classical Einstein cosmology, loop quantum effect reduces significantly the parameter spacetime ($c, w_x$) required by stability. If parameters $c$ and $w_x$ satisfy the conditions that the critical points are existent and stable, the universe will enter an era dominated by dark energy and dark matter with a constant energy ratio between them, and accelerate forever; otherwise it will enter an oscillatory regime. Comparing our results with the observations we find at $1sigma$ confidence level the universe will accelerate forever.