Let G be an absolutely special parahoric group scheme over C. When G is not E (2) 6 , using methods and results of Zhu, we prove a duality theorem for G : there is a duality between the level one twisted affine Demazure modules and function rings of certain torus fixed point subschemes in twisted affine Schubert varieties for G . As a consequence, we determine the smooth locus of any twisted affine Schubert variety in affine Grassmannian of G , which confirms a conjecture of Haines and Richarz, when G is of type A (2) 2ℓ−1 , D (2) ℓ+1 , D (3) 4 . Some partial results for A (2) 2ℓ and E (2) 6 are also obtained. Additionally, we give geometric descriptions of the Frenkel-Kac isomorphism for twisted affine Lie algebras, and the fusion product for twisted affine Demazure modules.For the convenience of the readers, we use the following notations frequently: C: complex projective curve P 1 . G: almost-simple algebraic group of adjoint or simply-connected type. G : parahoric group scheme over the ring of formal power series. G: parahoric Bruhat-Tits group scheme over curve. Gr G : affine Grassmannian of G. Gr G : affine Grassmanian of G . Gr G,C : global affine Grassmannian of G. Gr λ G : affine Schubert variety. Gr λ G : twisted affine Schubert variety. Gr λ G : global affine Schubert variety for G. L: level one line bundle on Gr G . L : level one line bundle on Gr G . L: level one line bundle on Bun G and Gr G,C .