The mechanism of the cycloaddition reaction of singlet dimethyl methylene carbene and acetone has been studied by using second-order Moller-Plesset perturbation and density functional theory. The geometrical parameters, harmonic vibrational frequencies and energy of stationary points on the potential energy surface are calculated by MP2/6-31G* and B3LYP/6-31G* methods. The results show that path b of the cycloaddition reaction (1) would be the major reactive channel of the cycloaddition reaction between singlet dimethyl methylene carbene and acetone, which proceeds in two steps: i) The two reactants form an energy-rich intermediate (INT1b), which is an exothermic reaction of 23.3 kJ/mol with no energy barrier. ii) The intermediate INT1b isomerizes to a three-membered ring product (P1) via transition state TS1b with energy barrier of 22.2 kJ/mol. The reaction rate of this reaction and its competitive reactions do greatly differ, with excellent selectivity. In view of dynamics and thermodynamics, this reaction is suitable for occurring at 1 atm and temperature range of 300―800 K, in which the reaction will have not only the larger spontaneous tendency and equilibrium constant but also the faster reaction rate.