Mutations in the S region of the hepatitis B virus (HBV) envelope gene are associated with immune escape, occult infection, and resistance to therapy. We previously identified naturally occurring mutations in the S gene that alter HBV virion secretion. Here we used transcomplementation assay to confirm that the I110M, G119E, and R169P mutations in the S domain of viral envelope proteins impair virion secretion and that an M133T mutation rescues virion secretion of the I110M and G119E mutants. The G119E mutation impaired detection of secreted hepatitis B surface antigen (HBsAg), suggesting immune escape. The R169P mutant protein is defective in HBsAg secretion as well and has a dominant negative effect when it is coexpressed with wild-type envelope proteins. Although the S domain is present in all three envelope proteins, the I110M, G119E, and R169P mutations impair virion secretion through the small envelope protein. Conversely, coexpression of just the small envelope protein of the M133T mutant could rescue virion secretion. The M133T mutation could also overcome the secretion defect caused by the G145R immune-escape mutation or mutation at N146, the site of N-linked glycosylation. In fact, the M133T mutation creates a novel N-linked glycosylation site ( 131 NST 133 ). Destroying this site by N131Q/T mutation or preventing glycosylation by tunicamycin treatment of transfected cells abrogated the effect of the M133T mutation. Our findings demonstrate that N-linked glycosylation of HBV envelope proteins is critical for virion secretion and that the secretion defect caused by mutations in the S protein can be rescued by an extra glycosylation site.The hepatitis B virus (HBV) is an enveloped DNA virus with a tropism for the liver. The 3.2-kb HBV genome harbors genes encoding core protein and its secreted version (called HBeAg), DNA polymerase, the transcriptional transactivator HBx, and envelope proteins. The envelope gene, which is completely overlapped by the polymerase gene, has three in-frame AUG codons that can serve as alternative translation initiation sites. This leads to the expression of three coterminal envelope proteins: large (L), middle (M), and small (S). The sequence unique to the L protein is called the pre-S1 domain, while a downstream sequence shared with the M protein is called the pre-S2 domain. The S domain is present in all three envelope proteins. The S and M proteins are translated from a 2.1-kb subgenomic RNA with a heterogeneous 5Ј end, while the L protein is expressed from a longer (2.4-kb) subgenomic RNA. The S protein is the most abundantly expressed envelope protein. The L and S proteins exist in nonglycosylated and monoglycosylated forms (L protein, p39 and gp42, respectively; S protein, p24 and gp27, respectively) due to a facultative Nlinked glycosylation site (N-X-S/T) at N146 of the S domain. The M protein contains an extra, constitutive N-linked glycosylation site at position 4 in the pre-S2 domain and consequently exists in monoglycosylated (gp33) and diglycosylated (gp36) form...