One of the most extreme and fascinating examples of naturally occurring mutagenesis is represented by circular permutation. Circular permutations involve the linking of two chain ends and cleavage at another site. Here we report the first description of the folding mechanism of a naturally occurring circularly permuted protein, a PDZ domain from the green alga Scenedesmus obliquus. Data reveal that the folding of the permuted protein is characterized by the presence of a low energy off-pathway kinetic trap. This finding contrasts with what was previously observed for canonical PDZ domains that, although displaying a similar primary structure when structurally re-aligned, fold via an on-pathway productive intermediate. Although circular permutation of PDZ domains may be necessary for a correct orientation of their functional sites in multidomain protein scaffolds, such structural rearrangement may compromise their folding pathway. This study provides a straightforward example of the divergent demands of folding and function.A crucial development of our knowledge on protein folding has been contributed by correlating rate constants of folding of small proteins with their topology as measured by the gross parameter of the contact order (1). The contact order represents the average distance, on the primary structure, between interacting residues in the tertiary structure. A protein with a low contact order will by and large present interacting residues that are close in sequence. On the other hand, high contact order implies a large number of long-range interactions. Baker and coworkers (2) first showed a strong correlation between kinetic and structural parameters, suggesting that protein topology is a key factor in determining the folding pathways and speed. An important corollary of these observations is that folding transition states must reflect a distorted version of the native state. This feature was already captured by the nucleation condensation model (3, 4), which suggested the protein to fold all at once around an extended, weakly formed, folding nucleus.The notion that protein folding pathways are governed by protein topology (1) has recently been challenged by ingenious experiments using topological mutants such as circularly permuted variants (5-9). Despite the dramatic change experienced by the primary structure, circular permutations seem well tolerated by several protein sequences. In nature, circular permutations have been recognized in ϳ5% of proteins of known structures (10,11). Folding studies on artificially permuted proteins have been specifically aimed at monitoring the effect on both folding speed and mechanism. By systematically altering the sequence connectivity of the ribosomal protein S6, Oliveberg and coworkers (12) showed that protein folding rate constants of circularly permuted variants are well predicted by the contact order parameter. On the other hand, analysis of protein folding pathways reveals apparently contradicting results. In particular, while the folding pathway of chymotr...