The Holstein-Hubbard model with Gaussian phonon anharmonicity is studied in one-dimension at half filling using a variational method based on a series of canonical transformations. A fairly accurate phonon state is chosen to average the transformed Holstein-Hubbard Hamiltonian to obtain an effective Hubbard model which is then solved using the exact Bethe - ansatz following Lieb and Wu to obtain the ground state energy, the average lattice displacement and the renormalized parameters. The Mott-Hubbard criterion, local spin moment and the von Neumann entropy (which is a measure of quantum entanglement) are calculated to determine the ground state phase diagram which shows that the width of the metallic phase flanked by the SDW and CDW phases increases with increasing anharmonicity at low and moderate values of anharmonicity but eventually saturates when the anharmonicity becomes substantially large.

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