The stereochemical mechanism of the nucleophilic substitution reaction at pentacoordinate phosphorus (P–V) atom is rarely studied. Here, we report the Atherton-Todd-type reaction of pentacoordinate hydrospirophosphorane with phenolic compounds in detail. The stereochemical mechanism of nucleophilic substitution at P–V atom was proposed by 31P NMR tracing experiment, X-ray diffraction analysis, and density functional theory calculations. The first step of the Atherton-Todd-type reaction is the formation of halogenated spirophosphorane intermediate with retention of configuration at phosphorus definitely. The second step is a nucleophilic substitution reaction at P–V atom of halogenated spirophosphorane. When using CCl4 as a halogenating agent, the reaction of chlorinated spirophosphorane proceeds via SN2(P–V) mechanism, and the backside attack of P–Cl bond is the main pathway. For chlorinated spirophosphorane with ΔP configuration, the completely P-inverted product is normally obtained. As for chlorinated spirophosphorane with ΛP configuration, which has larger steric hindrance behind P–Cl bond, the proportion of P-retained products apparently increases and a pair of diastereoisomers is acquired. Furthermore, if CBr4 is used as a halogenating agent, the nucleophilic substitution reaction of brominated spirophosphorane may go through a SN1(P–V) mechanism to afford a pair of diastereoisomers.