N-Glycosylation in the endoplasmic reticulum is an essential protein modification and highly conserved in evolution from yeast to man. Here we identify and characterize two essential yeast proteins having homology to bacterial glycosyltransferases, designated Alg13p and Alg14p, as being required for the formation of GlcNAc 2 -PP-dolichol (Dol), the second step in the biosynthesis of the unique lipid-linked core oligosaccharide. Down-regulation of each gene led to a defect in protein N-glycosylation and an accumulation of GlcNAc 1 -PP-Dol in vivo as revealed by metabolic labeling with [ 3 H]glucosamine. Microsomal membranes from cells repressed for ALG13 or ALG14, as well as detergent-solubilized extracts thereof, were unable to catalyze the transfer of N-acetylglucosamine from UDP-GlcNAc to [14 C]GlcNAc 1 -PP-Dol, but did not impair the formation of GlcNAc 1 -PP-Dol or GlcNAc-GPI. Immunoprecipitating Alg13p from solubilized extracts resulted in the formation of GlcNAc 2 -PP-Dol but required Alg14p for activity, because an Alg13p immunoprecipitate obtained from cells in which ALG14 was downregulated lacked this activity. In Western blot analysis it was demonstrated that Alg13p, for which no well defined transmembrane segment has been predicted, localizes both to the membrane and cytosol; the latter form, however, is enzymatically inactive. In contrast, Alg14p is exclusively membrane-bound. Repression of the ALG14 gene causes a depletion of Alg13p from the membrane. By affinity chromatography on IgG-Sepharose using Alg14-ZZ as bait, we demonstrate that Alg13-myc co-fractionates with Alg14-ZZ. The data suggest that Alg13p associates with Alg14p to a complex forming the active transferase catalyzing the biosynthesis of GlcNAc 2 -PP-Dol.N-Linked oligosaccharide chains of eukaryotic glycoproteins are derived from the common core oligosaccharide precursor Glc 3 Man 9 GlcNAc 2 -PP-Dol, 2 which is synthesized by an evolutionary highly conserved process in the endoplasmic reticulum (ER) (1-4). Subsequent to its synthesis the core glycan is transferred en bloc onto selected Asn-X-Ser/Thr acceptor sites of nascent polypeptide chains by the oligosaccharyltransferase complex (5, 6). Synthesis of the lipidlinked oligosaccharide starts on the cytoplasmic side of the ER, where GlcNAc-1-phosphate is transferred from UDP-GlcNAc to Dol-P followed by the addition of one GlcNAc and five mannose residues from UDP-GlcNAc and GDP-Man, respectively. The resulting Man 5 GlcNAc 2 -PP-Dol, thus generated, is translocated into the lumen of the ER (4, 7, 8) and extended by four mannose and three glucose residues deriving from Dol-P-Man and Dol-P-Glc, respectively. Some of the reactions of this pathway have been studied in vitro using microsomal membranes, solubilized extracts, or partially purified enzymes from different sources (9 -24). However a detailed enzymology and especially the regulation and coordination of their activities remain to be elucidated. In the yeast Saccharomyces cerevisiae, alg mutants (for asparagine-linked glycosylatio...