Numerous peptides function as hormones, neurotransmitters, and growth factors. Enzymatic α‐amidation is a biologically important posttranslational modification of the C‐terminus of many of these peptides. This modification alters the biological properties and enhances the stability of the peptides toward digestion by carboxypeptidases. Peptidylglycine α‐hydroxylating monooxygenase (PHM) is an ascorbate and copper‐dependent catalytic domain of an α‐amidating enzyme (peptidylglycine α‐amidating monooxygenase, PAM) that catalyzes the stereospecific hydroxylation of an α‐carbon of a terminal glycine residue, the first step in the amidation reaction. This reaction is followed by cleavage of the glycine N Cα bond, which is carried out by the second PAM catalytic domain, peptidyl‐α‐hydroxyglycine α‐amidating lyase (PAL). Detailed structural studies of PHM revealed that its catalytic core binds two copper ions that support the oxygenation reaction by cycling through Cu(II)/Cu(I) oxidation states. These two Cu ions (Cu
H
and Cu
M
) are located 11 Å apart and are separated by a solvent‐accessible cleft. The monooxygenation reaction requires the two‐electron activation of molecular oxygen, which is achieved by the binding of O
2
to a single Cu(I) center (Cu
M
). Formation of this complex is dependent upon the presence of a peptidylglycine substrate and a reducing agent (ascorbate). Since the resting state of the enzyme contains two Cu(II) ions, the catalytic reaction requires transfer of two electrons from the reducing agent to the metal centers, and from the reduced copper ions to dioxygen. The reduced oxygen species then carries out the stereospecific hydroxylation of glycine after abstraction of the
pro‐S
hydrogen from Cα. Although, the structure and function of PHM have been broadly studied, the pathway of its electron transfer, the nature of the metal‐oxygen species, and details of the mechanism are still being investigated.