The serine hydrolase FTT258 from the highly pathogenic bacterium Francisella tularensis exists in distinct open and closed conformations. Based on comparison to the homologous human acyl protein thioesterase, this large structural rearrangement was proposed to provide connected control over the catalytic and membrane binding activity of FTT258. Using comprehensive mutagenesis and differential kinetic and membrane‐binding measurements, we determined the contribution of a key flexible loop to controlling the structural rearrangement and biological activity of FTT258. For the catalytic activity, a centrally located tryptophan residue (Trp66) was deemed essential, with the resulting alanine variant showing complete ablation of enzyme activity. Other amino acids localized near this essential tryptophan residue, including Met63, Arg64, Tyr67, and Asp68, also significantly decreased the hydrolase activity, indicating a critical target area for controlling the enzyme activity and structural rearrangement of FTT258. Combinatorial variants containing the Trp66 substitution with other important residues showed enzymatic activity similar to the Trp66 variant alone, suggesting a controlling role for this residue. Liposome‐binding experiments with the tryptophan variants did not however show significant changes in membrane binding activity. Instead, removal of a proximal positively‐charged arginine residue (Arg64) significantly decreased the membrane binding activity of FTT258. Together, the conformational change in FTT258 dually controlled the catalytic and membrane binding activity of FTT258, but through distinct subsections of a key flexible loop.Support or Funding InformationFunding provided by a Butler University Holcomb research award and a Senior Research Grant from the Indiana Academy of Sciences.