Combined QM(PM3)/MM molecular dynamics simulations together with QM(DFT)/MM optimizations for key configurations have been performed to elucidate the enzymatic catalysis mechanism on the detoxification of paraoxon by phosphotriesterase (PTE). In the simulations, the PM3 parameters for the phosphorous atom were re-optimized. The equilibrated configuration of the enzyme/substrate complex showed that paraoxon can strongly bind to the more solventexposed metal ion Zn β , but the free energy profile along the binding path demonstrated that the binding is thermodynamically unfavorable. This explains why the crystal structures of PTE with substrate analogues often exhibit long distances between the phosphoral oxygen and Zn β . The subsequent S N 2 reaction plays the key role in the whole process, but controversies exists over the identity of the nucleophilic species which could be either a hydroxide ion terminally coordinated to Zn α or the μ-hydroxo bridge between the α-and β-metals. Our simulations supported the latter and showed that the rate-limiting step is the distortion of the bound paraoxon in order to approach the bridging hydroxide. After this preparation step, the bridging hydroxide ion attacks the phosphorous center and replaces the diethyl phosphate with a low barrier. Thus, a plausible way to engineer PTE with enhanced catalytic activity is to stabilize the deformed paraoxon. Conformational analyses indicate that Trp131 is the closest residue to the phosphoryl oxygen, and mutations to Arg or Gln or even Lys which can shorten the hydrogen bond distance with the phosphoryl oxygen could potentially lead to a mutant with enhanced activity for the detoxification of organophosphates.