Prodiginines are a class of red-pigmented natural products with immunosuppressant, anticancer, and antimalarial activities. Recent studies on prodiginine biosynthesis in Streptomyces coelicolor have elucidated the function of many enzymes within the pathway. However, the function of RedJ, which was predicted to be an editing thioesterase based on sequence similarity, is unknown. We report here the genetic, biochemical, and structural characterization of the redJ gene product. Deletion of redJ in S. coelicolor leads to a 75% decrease in prodiginine production, demonstrating its importance for prodiginine biosynthesis. RedJ exhibits thioesterase activity with selectivity for substrates having long acyl chains and lacking a -carboxyl substituent. The thioesterase has 1000-fold greater catalytic efficiency with substrates linked to an acyl carrier protein (ACP) than with the corresponding CoA thioester substrates. Also, RedJ strongly discriminates against the streptomycete ACP of fatty acid biosynthesis in preference to RedQ, an ACP of the prodiginine pathway. The 2.12 Å resolution crystal structure of RedJ provides insights into the molecular basis for the observed substrate selectivity. A hydrophobic pocket in the active site chamber is positioned to bind long acyl chains, as suggested by a long-chain ligand from the crystallization solution bound in this pocket. The accessibility of the active site is controlled by the position of a highly flexible entrance flap. These data combined with previous studies of prodiginine biosynthesis in S. coelicolor support a novel role for RedJ in facilitating transfer of a dodecanoyl chain from one acyl carrier protein to another en route to the key biosynthetic intermediate 2-undecylpyrrole.Modular polyketide synthases (PKSs) 5 and non-ribosomal peptide synthetases (NRPSs) are large multienzymes that catalyze the production of a wide range of biologically active compounds currently used as therapies for human diseases (1). Most PKSs and NRPSs are organized as assembly lines in which specific enzymatic domains catalyze elongation or modification of specific pathway intermediates. One key difference between these two types of assembly lines is that PKSs use acyl thioesters as substrates, whereas NRPSs use amino acids. Both PKS and NRPS pathway intermediates are tethered, via a thioester bond, to the phosphopantetheine (Ppant) arms of acyl/ peptidyl carrier protein (ACP/PCP) domains throughout chain assembly. Thioester cleavage, most often catalyzed by a terminating or type I thioesterase (TE I), releases the fully assembled polyketide/peptide from the carrier domain.Prodiginine biosynthesis is directed by the red cluster in Streptomyces coelicolor and involves hybrid NRPS/PKS multienzymes employing an ␣-oxoamine synthase (OAS) in a highly unusual chain release mechanism to assemble undecylprodiginine (1) and its carbocyclic derivative streptorubin B (2) (Fig. 1A) (2-5). The therapeutic potential of prodiginines was demonstrated in prior studies in which analogues of undecylprod...