The hydrolysis of a series of unactivated dipeptides in the presence of a zirconium(IV)‐substituted Lindqvist type polyoxometalate, (Me4N)2[W5O18Zr(H2O)3] (designated as ZrW5), was studied by kinetic experiments and NMR spectroscopy. Among the dipeptides examined, those with the X–Ser amino acid sequence were most effectively hydrolyzed. The kinetics of the hydrolysis of histidylserine (His–Ser) was studied in detail; a rate constant of 95.3 (± 0.1) × 10–7 s–1 (pD 7.4 and 60 °C) in the presence of an equimolar amount of ZrW5 was calculated. The binding of His–Ser to ZrW5 was examined by UV/Vis, 1H, 13C, and 183W NMR spectroscopy, and the data indicate that at physiological pD His–Ser chelates the ZrIV through its imidazole nitrogen, amine nitrogen, and amide carbonyl oxygen. In the presence of ZrW5, the pD profile of kobs is bell‐shaped, with a maximum reaction rate at pD 7.5. At high pD values an inactive complex is formed as a result of the deprotonation of the amide nitrogen, resulting in inhibition of His–Ser hydrolysis. The effects of pH, temperature, inhibitors, and ionic strength on the hydrolysis rate constant were also investigated, and a full account of the mechanism of this novel reaction is given.