Abstract. Evidence is presented that rat kidney contains enzymes that catalyze the synthesis and utilization of glutathione; these reactions, which involve the uptake and release of amino acids from y-glutamyl linkage, constitute a cyclical process which is termed "the y-glutamyl cycle." The y-glutamyl cycle has properties that fulfill the requirements of an amino acid transport system. Thus, -y-glutamyl transpeptidase may function in translocation and y-glutamylcysteine synthetase and glutathione synthetase may catalyze energy-requiring "recovery" steps in transport. These and other considerations suggest that glutathione serves a carrier function in amino acid transport.It has long been known that kidney preparations catalyze the degradation of glutathioneI, and that y-glutamyl transpeptidase2 plays an important role in this process. This enzyme catalyzes the transfer of the -y-glutamyl moiety of glutathione to a variety of a-amino acids:glutathione + amino acid --y-glutamylamino acid + cysteinylglycine (1)Purified preparations of -y-glutamyl transpeptidase also catalyze the liberation of glutamate from glutathione and -y-glutamylamino acids. The broad amino acid specificity of reaction (1) has been amply demonstrated3-7. The enzyme is widely distributed in animal tissues, kidney being most active. It is notable that the enzyme is bound to tissue particles and that purified preparations of the enzyme contain as much as 30%0 carbohydrate.8'9 -y-Glutamyl cyclotransferase (y-glutamyl lactamase), which catalyzes reaction (2)10,-y-glutamylamino acid --pyrrolidone carboxylate + amino acid (2) acts rapidly on the -y-glutamyl derivatives of glutamine, alanine, and glycine. When both transpeptidase (TP) and cyclotransferase (CT) are present the y-glutamyl derivatives of virtually all of the protein amino acids are degraded by the following pathway11: 'y-Glu-amino acid + y-Glu-amino acid TP y-Glu-y-Glu-amino acid + amino acid (3a) 7y-Glu-y-Glu-amino acid CT pyrrolidone carboxylate + y-Glu-amino acid (3b) 1248