Phenazine-1-carboxylic acid decarboxylase (PhdA) is a prenylated-FMN-dependent (prFMN) enzyme belonging to the UbiD family of decarboxylases. Many UbiD-like enzymes catalyze (de)carboxylation reactions on aromatic rings and conjugated double bonds and are potentially valuable industrial catalysts. We have investigated the mechanism of PhdA using a slow turnover substrate, 2,3-dimethylquinoxaline-5-carboxylic acid (DQCA). Detailed analysis of the pH dependence and solvent deuterium isotope effects associated with the reaction uncovered unusual kinetic behavior. At low substrate concentrations, a substantial inverse solvent isotope effect (SIE) is observed on V_max/K_M of ∼ 0.5 when reaction rates of DQCA in H₂O and D₂O are compared. Under the same conditions, a normal SIE of 4.15 is measured by internal competition for proton transfer to the product. These apparently contradictory results indicate that the SIE values report on different steps in the mechanism. A proton inventory analysis of the reaction under V_max/K_M and V_max conditions points to a “medium effect” as the source of the inverse SIE. Molecular dynamics simulations of the effect of D₂O on PhdA structure support that D₂O reduces the conformational lability of the enzyme and results in a more compact structure, akin to the active, “closed” conformer observed in crystal structures of some UbiD-like enzymes. Consistent with the simulations, PhdA was found to be more stable in D₂O and to bind DQCA more tightly, leading to the observed rate enhancement under V_max/K_M conditions.