Protein Tyrosine Phosphatase 1B (PTP1B) is the canonical enzyme for investigating how distinct structural elements influence enzyme catalytic activity. While it is recognized that dynamics are essential for PTP1B function, the data collected thus far have not resolved whether distinct elements are dynamically coordinated, or, alternatively, if they fulfill their respective functions independently. To answer this question, we performed a comprehensive 13C methyl relaxation study of Ile, Leu and Val (ILV) residues of PTP1B, which, due to its substantially increased sensitivity, provides a comprehensive understanding of the influence of protein motions on different timescales for enzyme function. We discovered that PTP1B exhibits dynamics at three distinct timescales. First, it undergoes a distinctive slow motion that allows for the dynamic binding and release of its two most N-terminal helices from the catalytic core. Second, we showed that PTP1B 13C-methyl group side chain fast timescale dynamics and 15N backbone fast timescale dynamics are fully consistent, demonstrating that fast fluctuations are essential for the allosteric control of PTP1B activity. Third, and most importantly, using 13C ILV ct-CPMG relaxation measurements experiments, we demonstrated that all four catalytically important loops—the WPD, the Q, the E and the substrate binding loop (SBL)—work in dynamic unity throughout the catalytic cycle of PTP1B. Thus, these data show that PTP1B activity is not controlled by a single functional element, but instead all key elements are dynamically coordinated. Together, these data provide the first fully comprehensive picture on how the validated drug target PTP1B functions.