Tissue transglutaminase (tTG) exhibits a magnesiumdependent GTP/ATPase activity that is involved in the regulation of the cell cycle and cell receptor signaling. The portion of the molecule involved in GTP/ATP hydrolysis is unknown. We expressed and purified a series of C-terminal truncation mutants of human tTG as glutathione S-transferase fusion proteins (⌬S538, ⌬E447, ⌬P345, ⌬C290, ⌬V228, and ⌬F185) to determine the effect on GTP/ATPase activity. The truncation of the C terminus did not change significantly the apparent K m value for either GTP or ATP. In contrast, the K cat value for GTP was increased by 4.6-and 3-fold for the ⌬S538 and ⌬E447 mutants, respectively. The ⌬P345 mutant had the highest hydrolysis activity with a 34-fold increase. The hydrolysis activity then declined to 8.1-, 8.7-, and 1.9-fold for the ⌬C290, ⌬V228, and ⌬F185 mutants, respectively. The K cat for ATP changed in parallel with the GTPase results. Thin layer chromatography analysis of the hydrolysis reaction products revealed that ATP was rapidly converted to ADP followed by a much slower conversion of ADP to AMP when incubated with wild type tTG or the ⌬P345 mutant. There was a substantial decrease in the calcium-dependent TGase activity when the last 149 amino acid residues were deleted from the C terminus. Less than 5% of the TGase activity was detected for the ⌬S538 and ⌬E447 mutants. In conclusion, we have located the ATP and GTP hydrolytic domain to amino acid residues 1-185. The C terminus functions to inhibit the expression of endogenous GTP/ATPase activity of tTG, and the potential role of the C terminus in modulating this activity is discussed.Tissue transglutaminase (tTG) 1 is a unique member of the transglutaminase gene family in that it exhibits two distinct enzyme activities (1-3). The calcium-dependent transglutaminase activity (TGase) catalyzes the covalent modification of proteins by the formation of ␥-glutamyl-⑀-lysine bonds between proteins or polyamines (1, 2). The TGase activity is considered to be an important intracellular and extracellular reaction during apoptosis (4, 5), bone ossification (6), tissue repair (7), and tumor growth (8). TGase activity requires a calcium binding site and active site cysteine to form a thioester bond with the glutamine substrate (1, 2). The active site of human tTG is located at Cys-277, and the putative calcium binding site is located between amino acids 446 and 453 based on sequence homology to the calcium binding site in the factor XIII A chains (9).The tTG will selectively modify a group of protein-bound glutamine residues that exist in proteins found in the extracellular matrix (ECM) including vitronectin, fibronectin, osteonectin, and nidogen (1, 2). When tTG is released into plasma or ECM it binds to fibronectin and retains TGase activity (1, 2). Fibronectin binding functions to localize tTG to sites of fibronectin expression and deposition and limits the availability of the enzyme for cross-linking other substrates. The fibronectin binding site is located in the N-termi...