Fe is not only the most abundant metal on the planet, but also the key component of many enzymes in organisms that are capable to catalyze many chemical conversions. Mono-dispersed Fe atoms on carbonaceous materials are a kind of single atom catalysts (SACs) that function like enzymes. To tackle the outstanding catalytic performance of Fe based SACs, we extended CO oxidation reaction network over mono-dispersed Fe atoms on graphene (FeGR) by first-principles based calculations. FeGR catalyzed CO oxidation initiates with revised Langmuir–Hinshelwood pathway through CO assisted scission of O-O bond in peroxide species (OCOO). We showed that carbonate species (CO3) that was generally considered as a persistence species blocking reaction sites before may form from CO2 and negatively charge O species. This pathway competes with desorption of CO2 and reduction of Fe center with gaseous CO, and is exothermic and inevitable, especially at low temperatures and with high CO2 content. Though direct dissociation of CO3 is demanding on FeGR, further adsorption of CO on Fe in CO3 is plausible and takes place spontaneously. We then showed that adsorbed CO may react with CO3, forming a cyclic-carbonate-like species that dissociates easily to CO2. The finding highlights the reaction condition-dependent formation and evolution of CO3, as well as its contribution to CO conversion, and may extend the understanding to performance of SACs in low temperature CO oxidation.