The nature and extent of preferential solvation in SNAr reaction between 1-fluoro-2,4-dinitrobenzene and morpholine are observed to depend upon the concentration of amine. Positive deviation from ideality is observed during kinetic studies of reactions carried out with lower concentration of the amine, while reaction rates measured for systems containing higher concentration of the amine show negative deviation from ideal behavior. The anomaly originates from the competition between rate-limiting proton transfer and fluoride abstraction step in the SNAr mechanism. The observations have been explained on the basis of the generally accepted mechanism and by calculation of preferential solvation parameters.