Previous mass spectrometric (MS) studies demonstrated that singly charged hydration clusters of manganese ions [Mn(H 2 O) n ] + were, on one hand, highly reactive toward intracluster water insertion but, on the other hand, inert toward nitrous oxide activation. This contrast in reactivity has been rationalized by our present theoretical investigation for the interconversion between the pristine Mn(I) monovalent form as a monatomic ion in [Mn I (H 2 O) n ] + and the oxidized Mn(III) trivalent form as a hydride−hydroxide in [HMn III OH(H 2 O) n−1 ], as well as their reactivity toward nitrous oxide activation. Our theoretical interpretations are supported with quantum chemical calculations based on density functional theory (DFT), performed systematically for the cluster-size range of n = 1 − 12. Our DFT results show that water insertion is kinetically and thermodynamically favorable for n ≥ 8, suggesting [HMn III OH(H 2 O) n−1 ] + is the predominant form, as observed in previous MS experiments. While [Mn I (H 2 O) n ] + is capable of N 2 O reduction, the process of which is highly exothermic, similar reactions are unfavorable with [HMn III OH(H 2 O) n−1 ] + , which can only form weakly bound adducts with N 2 O. This work demonstrates the masking effect of water molecules over the high reactivity of the hydrated Mn(I) center and sheds light on the potential roles of water in transition metal systems.