Cytosolic -glucosidase (CBG) from mammalian liver is known for its broad substrate specificity and has been implicated in the transformation of xenobiotic glycosides. CBG also catalyzes a variety of transglycosylation reactions, which have been been shown with other glycosylhydrolases to function in synthetic and genetic regulatory pathways. We investigated the catalytic mechanism, substrate specificity, and transglycosylation acceptor specificity of guinea pig liver CBG by several methods. These studies indicate that CBG employs a two-step catalytic mechanism with the formation of a covalent enzyme-sugar intermediate and that CBG will transfer sugar residues to primary hydroxyls and equatorial but not axial C-4 hydroxyls of aldopyranosyl sugars. Kinetic studies revealed that correction for transglycosylation reactions is necessary to derive correct kinetic parameters for CBG. Further analyses revealed that for aldopyranosyl substrates, the activation energy barrier is affected most by the presence of a C-6 carbon and by the configuration of the C-2 hydroxyl, whereas the binding energy is affected modestly by the configuration and substituents at C-2, C-4, and C-5. These data indicate that the transglycosylation activity of CBG derives from the formation of a covalently linked enzymesugar intermediate and that the specificity of CBG for transglycosylation reactions is different from its specificity for hydrolysis reactions.A distinguishing feature of the cytosolic -glucosidase (CBG) 1 of mammalian liver (EC 3.2.1.21) is its broad substrate specificity. The enzyme hydrolyzes -D-galactopyranosides, -D-fucopyranosides, -D-xylopyranosides, and ␣-L-arabinopyranosides, in addition to -D-glucopyranosides (1). The enzyme also catalyzes transglycosylation reactions in which a sugar residue is transferred from a substrate molecule to an acceptor to form a new glycoside (2). These properties are consistent with the fact that CBG is a configuration-retaining glycosidase (3). Collectively, these data suggest that the catalytic mechanism of CBG consists of a double-displacement reaction involving the formation of a stable enzyme-sugar intermediate, as originally proposed for configuration-retaining glycosidases by Koshland (4).Additional evidence of a two-step catalytic mechanism for CBG was derived from studies performed with the inhibitor, Br-conduritol--epoxide, which is an irreversible, active sitedirected inactivator of the enzyme (5). However, studies with Escherichia coli -galactosidase and human glucocerebrosidase have shown that the mechanism of inactivation by related conduritol epoxide compounds differs from the catalytic mechanisms of these two enzymes. For both glucocerebrosidase and -galactosidase, the amino acid residue identified as the catalytic nucleophile by labeling with conduritol epoxides was later demonstrated to be incorrect by site-directed mutagenesis experiments (6, 7). The introduction of 2-deoxy-2-fluoro glycoside inhibitors by Withers and co-workers (8, 9) provided true mechanism-based i...