The nature of phase transition from an antiferromagnetic SDW polaronic Mott insulator to the paramagnetic bipolaronic CDW Peierls insulator is studied for the half-filled Holstein-Hubbard model in one dimension in the presence of Gaussian phonon anharmonicity. A number of unitary transformations performed in succession on the Hamiltonian followed by a general many-phonon averaging leads to an effective electronic Hamiltonian which is then treated exactly by using the Bethe-Ansatz technique of Lieb and Wu to determine the energy of the ground state of the system. Next using the Mott–Hubbard metallicity condition, local spin-moment calculation, and the concept of quantum entanglement entropy and double occupancy, it is shown that in a plane spanned by the electron–phonon coupling coefficient and onsite Coulomb correlation energy, there exists a window in which the SDW and CDW phases are separated by an intermediate phase that is metallic.