Mannose phosphorylation of N-linked oligosaccharides by UDP-GlcNAc:lysosomal enzyme N-acetylglucosamine-1-phosphotransferase is a key step in the targeting of lysosomal enzymes in mammalian cells and tissues. The selectivity of this process is determined by lysine-based phosphorylation signals shared by lysosomal enzymes of diverse structure and function. By introducing new glycosylation sites at several locations on the surface of mouse procathepsin L and modeling oligosaccharide conformations for sites that are phosphorylated, it was shown that the inherent flexibility of N-linked oligosaccharides can account for the specificity of the transferase for oligosaccharides at different locations on the protein. By using this approach, the physical relationship between the lysine-based signal and the site of phosphorylation of mannose residues was determined. The analysis also revealed the existence of additional independent lysine-based phosphorylation signals on procathepsin L, which account for the low level of phosphorylation observed when the primary Lys-54/Lys-99 signal is ablated. Mutagenesis of residues that surround Lys-54 and Lys-99 and demonstration of mannose phosphorylation of a glycosylated derivative of green fluorescent protein provide strong evidence that the cathepsin L phosphorylation signal is a simple structure composed of as few as two well placed lysine residues.The mammalian lysosomal protein targeting system has the capability of recognizing and modifying lysosomal hydrolases and growth factors from a wide range of protein families with high specificity. The molecular basis for this selectivity is due to the activity of the UDP-GlcNAc:lysosomal enzyme N-acetylglucosamine-1-phosphotransferase (GlcNAc-1-phosphotransferase), which phosphorylates N-linked oligosaccharides of these proteins by the addition of GlcNAc-1-P (1-5). This modification begins after lysosomal proteins are exported from the endoplasmic reticulum and is followed by the removal of the terminal GlcNAc moieties from the adducts. In the Golgi apparatus the phosphorylated proteins are bound to mannose 6-phosphate receptors, which mediate the delivery of the proteins to lysosomes.GlcNAc-1-phosphotransferase has been purified as a 540-kDa complex composed of disulfide-linked homodimers of ␣ and  subunits and two identical, noncovalently associated ␥ subunits (6). The ␣ subunit was shown to have nucleotide sugar binding activity, and on the basis of previous genetic data, it was known that the catalytic and protein recognition activities are likely to be located on separate subunits (7). This has since been verified by analysis of the transferase in cells from patients with mucolipidosis IIIC or variant pseudo-Hurler polydystrophy. GlcNAc-1-phosphotransferase from these patients is defective in the ␥ subunit, which prevents phosphorylation of lysosomal enzymes, yet transferase activity on synthetic substrates is retained (8).Although the molecular basis for recognition of lysosomal hydrolases by the transferase has been studied qu...