By performing density functional theory calculations, we have studied the Markovnikov addition of imidazole to vinyl acetate catalyzed by 1-butyl-3-methylimidazolium hydroxide, [bmIm]OH, a novel basic ionic liquid. The purpose is to show the detailed reaction mechanism, to rationalize the experimental observations, and in particular to better understand the role of [bmIm]OH played in the reaction as a catalyst. Two different reaction pathways (stepwise and concerted) have been charactered and analyzed in detail. It was found that both the cation and anion of [bmIm]OH play important roles in the Markovnikov addition, which decrease the barrier and increase the selectivity of Markovnikov addition. The present results rationalize the early experimental findings well and provide a prototype for theoretically understanding the Markovnikov addition catalyzed by room-temperature ionic liquids.