In metazoa cap 1 (m 7GpppNmp-RNA) is linked to higher levels of translation; however, the enzyme responsible remains unidentified. We have validated the first eukaryotic encoded cap 1 2-O-ribose methyltransferase, TbMTr1, a member of a conserved family that modifies the first transcribed nucleotide of spliced leader and U1 small nuclear RNAs in the kinetoplastid protozoan Most mature eukaryotic and viral mRNAs possess a 5Ј cap that consists of an inverted guanosine methylated at position N 7 linked to the first transcribed RNA nucleotide by a unique 5Ј-5Ј triphosphate bond (m 7 GpppN). This cap 0 is necessary for mRNA stability and increased translational efficiency (1). The enzymes involved in the capping reaction are conserved. The three enzymatic activities catalyzing the three-step capping process, RNA triphosphatase, RNA guanylyltransferase, and RNA methyltransferase (MTase), 2 have been identified and characterized in detail. Further modification of the cap is found in higher eukaryotes including mRNAs from insects, vertebrates, and associated animal viruses with additional ribose 2Ј-O-ribose methylations of the first (cap 1) and second (cap 2) transcribed nucleosides (2). Despite their widespread presence, little is known about the functional significance of mRNA cap 2Ј-O-ribose methylations in the eukaryotes, including their mechanism of formation, beyond the partial purification of two separate cap 1 and cap 2 2Ј-O-ribose MTase activities from HeLa cell extracts (3-5).Nature's most hypermethylated cap is present on the spliced leader (SL) RNA of the Kinetoplastidae, a family containing a number of medically important unicellular parasites including Trypanosoma brucei, Leishmania spp., and Trypanosoma cruzi. In addition to the standard cap 0, it has seven methylations collectively referred to as cap 4. The SL RNA cap 4 is composed of 2Ј-O-ribose methylations on the first four transcribed nucleosides with additional base methylations at the first and fourth positions (m 7 Gpppm 6,6 AmpAmpCmpm 3 Ump-SL RNA) (6). The biogenesis of mRNA in kinetoplastid parasites involves post-transcriptional processing of long polycistronic precursors into individual protein-coding mRNAs by the two physically coupled events of 5Ј trans-splicing and 3Ј polyadenylation (7,8). trans-Splicing also serves as a trans-capping reaction by attaching the 39-nucleotide SL with 5Ј-cap 4 to all mature mRNA.