Transglutaminases (TGases, EC 2.3.2.13) are enzymes that catalyze the cross-linking of peptides and proteins by the formation of isopeptide bonds between the γ-carboxamide group of a glutamine side chain and the ɛ-amino group of a lysine side chain. This reaction is known to occur via a modified ping-pong mechanism (Folk 1969) in which a glutamine-containing protein or peptide, the acyl-donor substrate, reacts with the enzyme’s catalytic cysteine residue to form a thioester bond which generates the covalent acyl-enzyme intermediate with concomitant release of ammonia (Scheme 1 ▶). This intermediate then reacts with a second substrate, the acyl-acceptor, which can be almost any primary amine (Aeschlimann and Paulsson 1994), to yield the amide product and free enzyme. The acyl-enzyme intermediate can also be hydrolyzed in the absence of primary amine but at a slower rate. A conserved Cys-His-Asp catalytic triad that is similar to that of cysteine proteases catalyzes these reactions. Although TGases exhibit high specificity towards the side chain of L-Gln as the acyl-donor substrate (Asn and D-Gln are not recognized), their specificity towards the acyl-acceptor is lower, and many primary amines can be recognized (Clarke et al. 1959; Folk 1983). Scheme 1. Catalytic mechanism of tissue TGase. TGases are divided into nine classes (Chen and Mehta 1999), of which the most abundant class is the ubiquitous tissue transglutaminase (Fesus and Piacentini 2002) found in all vertebrates (Wada et al. 2002). Tissue TGases are intracellular, monomeric enzymes that exhibit a calcium-dependent transglutaminase activity that is inhibited by GDP/GTP binding. Their structure comprises four domains (Fig. 1 ▶): the N-terminal β-sandwich domain, the catalytic core, the barrel 1 domain, and the C-terminal barrel 2 domain. Two crystal structures of tissue transglutaminase have been deposited in the Brookhaven Protein Data Bank. These are the structures of red sea bream tissue TGase (1G0D; Noguchi et al. 2001) and of human tissue transglutaminase with GDP bound at its allosteric binding site (1KV3; Liu et al. 2002). However, no TGase has yet been cocrystallized with ligand bound at the active site, limiting our understanding of the mode of substrate binding, although kinetic experiments have been performed that give clues as to the structural requirements for acyl-donor and acyl-acceptor substrates of tissue TGase (Clarke et al. 1959; Folk and Chung 1973). Folk and Cole (1965) made numerous observations with respect to the structural requirements for small peptide acyl-donor substrates of guinea pig liver TGase. They reported that Gln alone does not act as a substrate, nor do the peptides Gln-Gly and Gly-Gln-Gly. However, CBz-Gln-Gly, CBz-Gln-Gly ethyl ester, and benzoyl-Gly-Gln-Gly act as substrates. CBz-Gln shows poor but detectable activity. Folk and Cole concluded that for a glutamine on a small peptide to be recognized by tissue TGase it must be at least the next-to-last residue and the peptide should bear an N-terminal CBz group. For this reason, the commercially available CBz-Gln-Gly peptide serves as one of the most common nonproteic acyl-donor substrates for TGases in the literature. Figure 1. Crystal structure of red sea bream TGase (Noguchi et al. 2001). (A) Red sea bream TGase with active site residues circled. Front view. The P356–G369 loop is represented in ribbon diagram. (B) Top view. Although there is no consensus as to their physiological role, tissue TGases have been reported to act in endocytosis (Abe et al. 2000), apoptosis (Huo et al. 2003), extracellular matrix modification (Priglinger et al. 2003), and cell signaling (Singh et al. 2003). Tissue TGases have also been implicated in various physiological disorders such as Alzheimer’s disease (Kim et al. 1999), cataract formation (Shridas et al. 2001), and more recently, in Celiac sprue (Shan et al. 2002). As a result, development of inhibitors specific to tissue TGases (as opposed to type 1 or 3 TGases; Chen and Mehta 1999) is of current interest. However, to aid in inhibitor design, we need to gain a better understanding of the mode of binding of model peptide substrates to the enzyme. To this end, we performed a combined experimental/molecular modeling strategy consisting of (1) the synthesis of a series of CBz- or Boc-derivatized peptides and the measurement of their KM values, and (2) molecular modeling of their binding at the active site. Correlating the kinetic results with molecular modeling of the ligands bound at the active site cavity has allowed us to gain a better understanding of the requirements for productive binding of small peptide acyl-donor substrates.