Quantum mechanical/molecular mechanical molecular dynamics and free energy simulations are performed to study the acylation reaction catalyzed by kumamolisin-As, a serine-carboxyl peptidase, and to elucidate the catalytic mechanism and the origin of substrate specificity. It is demonstrated that the nucleophilic attack by the serine residue on the substrate may not be the rate-limiting step for the acylation of the GPH*FF substrate. The present study also confirms the earlier suggestions that Asp164 acts as a general acid during the catalysis and that the electrostatic oxyanion hole interactions may not be sufficient to lead a stable tetrahedral intermediate along the reaction pathway. Moreover, Asp164 is found to act as a general base during the formation of the acyl-enzyme from the tetrahedral intermediate. The role of dynamic substrate assisted catalysis (DSAC) involving His at the P 1 site of the substrate is examined for the acylation reaction. It is demonstrated that the bond-breaking and -making events at each stage of the reaction trigger a change of the position for the His side chain and lead to the formation of the alternative hydrogen bonds. The back and forth movements of the His side chain between the CdO group of Pro at P 2 and O δ2 of Asp164 in a ping-pong-like mechanism and the formation of the alternative hydrogen bonds effectively lower the free energy barriers for both the nucleophilic attack and the acyl-enzyme formation and may therefore contribute to the relatively high activity of kumamolisin-As toward the substrates with His at the P 1 site.Kumamolsin-As belongs to the recently characterized family of serine-carboxyl peptidases (sedolisins) that were originally described by Murao, Oda, and co-workers about 20 years ago (1-3). Sedolisins are present in a wide variety of organisms, including archaea, bacteria, molds, slime molds (mixomycetes), amoebas, fishes, and mammals, and they are active at low pH and often high temperature. This family of enzymes seems to have been derived through divergent evolution from a common ancestor with classical serine peptidases; the structural studies (4-10) showed that sedolisins have a fold resembling that of subtilisin, although they are significantly larger (the mature catalytic domains contain approximately 375 amino acid residues). One interesting question is why nature needs another family of subtilisin-like peptidases. For bacterial sedolisins, one possible explanation is that some organisms might have to utilize such evolved serine-carboxyl peptidases for their survival, presumably under acidic environments and high temperature.The biological importance of sedolisins in mammals has already been demonstrated by the fact that mutations leading to the loss of the human enzyme CLN2 (11-13), another member of the sedolisin family, result in a fatal neurodegenerative disease, classical late-infantile neuronal ceroid lipofuscinosis (14).The three-dimensional structures are available for three members of the sedolisin family, including sedolisin...