The influence of the multireference character in the transition state for the automerization reaction of cyclobutadiene is considered. We have analyzed two forms of taking into account this effect: either by the use of two-body density functionals or traditional density functional theory (DFT) correlation functionals conveniently modified. Comparison has also been made with conventional density functional theory Kohn-Sham (DFT-KS) [15] approaches. It is shown that only when the aforementioned multideterminantal character is included in the computational scheme is the activation energy in accord with accurate benchmark calculations.