Cyclodextrin-glycosyltransferases (CGTases) (EC 2.4.1.19) preferably catalyze transglycosylation reactions with glucosyl residues as acceptor, whereas the homologous ␣-amylases catalyze hydrolysis reactions using water as acceptor. This difference in reaction specificity is most likely caused by the acceptor binding site. To investigate this in detail we altered the acceptor site residues Lys-232, Phe-183, Phe-259, and Glu-264 of Bacillus circulans strain 251 CGTase using site-directed mutagenesis. Lys-232 is of general importance for catalysis, which appears to result mainly from stabilization of the conformation of the loop containing the catalytic nucleophile Asp-229 and His-233, a residue that has been implied in transition state stabilization. Glu-264 contributes to the disproportionation reaction only, where it is involved in initial binding of the (maltose) acceptor. Phe-183 and Phe-259 play important and distinct roles in the transglycosylation reactions catalyzed by CGTase. Mutation of Phe-183 affects especially the cyclization and coupling reactions, whereas Phe-259 is most important for the cyclization and disproportionation reactions. Moreover, the hydrophobisity of Phe-183 and Phe-259 limits the hydrolyzing activity of the enzyme. Hydrolysis can be enhanced by making these residues more polar, which concomitantly results in a lower transglycosylation activity. A double mutant was constructed that yielded an enzyme preferring hydrolysis over cyclization (15:1), whereas the wild type favors cyclization over hydrolysis (90:1).Cyclodextrin-glycosyltransferases (CGTase) 1 (EC 2.4.1.19) belong to the ␣ -amylase family (glycosyl hydrolase family 13)(1), an important group of starch-converting enzymes. Catalysis in the ␣ -amylase family proceeds via a covalently linked intermediate (2), which basically divides the reaction in two steps. In the first step the donor substrate (starch or oligosaccharide) is processed, yielding the covalent intermediate (donor reaction). In the second step the acceptor reacts with this intermediate, resulting in product formation (acceptor reaction). Whereas ␣ -amylases usually catalyze a hydrolysis reaction using water as acceptor, CGTases mainly catalyze transglycosylation reactions in which the acceptor is either the non-reducing end glucose of another oligosaccharide (disproportionation) or the non-reducing end glucose of the covalently linked oligosaccharide intermediate, resulting in formation of a cyclodextrin (cyclization). Also the reverse of the cyclization, in which a cyclodextrin is cleaved and transferred to an accepting oligosaccharide (coupling), is catalyzed by CGTase (3). The main determinants that cause the difference in reaction specificity between ␣ -amylases and CGTases are thus likely to be found at the acceptor binding sites.The crystal structures of the Bacillus circulans strain 251 CGTase in complex with an acarbose-derived maltononaose inhibitor (4, 5) and a maltononaose substrate (2) have revealed the nature of the acceptor site. In the maltononaose s...