A vertical isolation pier with lead extrusion damping component (VIPL) was developed. The construction principle and characteristic of VIPL and the design theory of VIPL’s core component were clarified. And the seismic performance of VIPL with different amount of lead body and normal reinforced concrete pier were investigated by finite element simulation method. The results indicate that the construction and the principle of VIPL are feasible. This type of isolation pier has explicit seismic reduction mechanism. It prolongs structure’s vertical vibration period, weakens the resonant effect with elastic layer and enhances structure’s vertical damping performance with lead extrusion damping component. The vertical stiffness of VIPL is less than that of common reinforced concrete pier which makes VIPL play a good role in hysteretic energy dissipation performance with its lead extrusion damping component being capable of dissipating energy under a tiny vertical displacement. Enlarging the size of extrusion bar’s bulge properly and increasing the amount of lead body can effectively increase the damping force of lead extrusion damping component and enhance the pier’s energy dissipation performance significantly.