The Golgi apparatus has a central role in the glycosylation of proteins and lipids. There is a sequential addition of carbohydrates by glycosyltransferases that are distributed within the Golgi in the order in which the glycosylation occurs. The mechanism of glycosyltransferase retention is considered to involve their transmembrane domains and flanking regions, although we have shown that the cytoplasmic tail of ␣1,2-fucosyltransferase is important for its Golgi localization. Here we show that the removal of the ␣1,2-fucosyltransferase cytoplasmic tail altered its function of fucosylation and its localization site. When the tail was removed, the enzyme moved from the Golgi to the trans Golgi network, suggesting that the transmembrane is responsible for retention and that the cytoplasmic tail is responsible for localization. The cytoplasmic tail of ␣1,2-fucosyltransferase contains 8 amino acids (MWVPSRRH), and mutating these to alanine indicated a role for amino acids 3 to 7 in localization with a particular role of Ser 5 . Mutagenesis of Ser 5 to amino acids containing an hydroxyl (Tyr and Thr) demonstrated that the hydroxyl at position 5 is important. Thus, the cytoplasmic tail, and especially a single amino acid, has a predominant role in the localization and thus the function of ␣1,2-fucosyltransferase.Glycosylation of proteins and lipids occurs in the endoplasmic reticulum and the Golgi apparatus and is mediated by glycosyltransferases and glycosidases that are resident there. The enzymes are ordered so that carbohydrates can be sequentially added to and removed from proteins and lipids (1-3). The mechanism for retention of the enzymes in the appropriate subcompartment and the domains of the enzymes that direct this localization are not clear. At present there are two proposed mechanisms for Golgi glycosyltransferase localization, kin recognition (4, 5), where like gycosyltransferases form aggregates within the Golgi, and the lipid bilayer model, where the hydrophobic transmembrane domain retains the transferases in the Golgi (6). Neither the kin-recognition nor the lipid bilayer models fully explain the specific and functional localization of transferases to discrete sites within the Golgi; we now demonstrate that the cytoplasmic tail is a key element in the specific localization of ␣1,2-fucosyltransferase.Glycosyltransferases are type II integral membrane proteins, with the catalytic domain residing in the lumen of the Golgi (7) and the N terminus in the cytoplasm (cytoplasmic tail). Several glycosyltransferases have been localized in compartments of the Golgi by electron microscopy (for review see Ref. 8). Studies of glycosyltransferases have demonstrated the importance of the transmembrane domain and its flanking sequences (9 -14) and the luminal domain (15) for localization.We examined two glycosyltransferases that compete for the same acceptor, N-acetyllactosamine (NAcLac), 1 and showed that when there is expression of ␣1,3-galactosyltransferase (GT) together with ␣1,2-fucosyltransferase (FT) within a ...