A first-principles-derived approach is developed to study finite-temperature properties of Pb(Zr1−xTix)O3 (PZT) solid solutions near the morphotropic phase boundary (MPB). Structural and piezoelectric predictions are in excellent agreement with experimental data and direct firstprinciples results. A low-temperature monoclinic phase is confirmed to exist, and is demonstrated to act as a bridge between the well-known tetragonal and rhombohedral phases delimiting the MPB. A successful explanation for the large piezoelectricity found in PZT ceramics is also provided. High piezoelectric response is experimentally found in ceramics of PZT around the MPB. The origins of this large piezoelectric response are unclear. On the one hand, semi-empirical simulations predict that the large experimental value of the d 33 piezoelectric coefficient results mainly from the large value of d 33 that a single-crystal PZT would exhibit [4]. On the other hand, recent firstprinciples calculations [5,6] have found that the d 33 coefficient of a tetragonal single crystal of Pb(Zr 0.5 Ti 0.5 )O 3 are estimated to be three times smaller than the experimental value obtained for ceramics at low temperature.Furthermore, recent synchrotron x-ray powder diffraction studies have revealed the existence of an unexpected low-temperature monoclinic phase of PZT at x=0.48 [7], which implies that the phase diagram of PZT is more complex than previously thought. This monoclinic phase may act as a second-order transitional bridge between the tetragonal phase, for which the electrical polarization P lies along the pseudo-cubic [001] direction, and the rhombohedral phase, for which P is along the pseudo-cubic [111] direction. If this is indeed the case, the polarization of the monoclinic phase continuously rotates as the composition x decreases in the MPB region [7]. Such a continuous rotation has yet to be observed.Obviously, accurate simulations are needed to understand the properties of perovskite alloys in general, and of PZT in particular. Since the beginning of the present decade, first-principles methods have emerged as a powerful tool for investigating properties of ferroelectric systems theoretically (see [5,6,8,9] and references therein). However, these methods are essentially restricted to the study of the zero-temperature properties of small cells, while accurate and interesting predictions of alloy properties would require calculations on much larger cells at finite temperature. Ideally one desires a computational scheme with the capability of predicting the properties of "real" perovskite alloy systems at finite temperature, with the accuracy of the first-principles methods.The purpose of this letter is to demonstrate that it is possible to develop such a scheme, and to apply it to study the finite-temperature behavior of PZT in the vicinity of the MPB. Remarkably, we find that the existence of an intermediate monoclinic phase emerges naturally from this approach. Moreover, the theory provides a novel and successful explanation for the large ...