Transposition of mobile genetic elements proceeds through a series of DNA phosphoryl transfer reactions, with multiple reaction steps catalyzed by the same set of active site residues. Mu transposase repeatedly utilizes the same active site DDE residues to cleave and join a single DNA strand at each transposon end to a new, distant DNA location (the target DNA). To better understand how DNA is manipulated within the Mu transposase-DNA complex during recombination, the impact of the DNA immediately adjacent to the Mu DNA ends (the flanking DNA) on the progress of transposition was investigated. We show that, in the absence of the MuB activator, the 3 -flanking strand can slow one or more steps between DNA cleavage and joining. The presence of this flanking DNA strand in just one active site slows the joining step in both active sites. Further evidence suggests that this slow step is not due to a change in the affinity of the transpososome for the target DNA. Finally, we demonstrate that MuB activates transposition by stimulating the reaction step between cleavage and joining that is otherwise slowed by this flanking DNA strand. Based on these results, we propose that the 3 -flanking DNA strand must be removed from, or shifted within, both active sites after the cleavage step; this movement is coupled to a conformational change within the transpososome that properly positions the target DNA simultaneously within both active sites and thereby permits joining.The successful relocation of mobile genetic elements, as with all DNA rearrangement processes, requires the precise spatial and temporal organization of DNA components within the active sites of large nucleoprotein complexes. This dynamic organization permits the proper series of DNA cleavage and joining reactions that comprise each DNA recombination pathway. Transposition and retroviral integration occur via one of two pathways that share common reaction steps (1, 2). Similar phosphoryl transfer reactions also take place during the early steps of VDJ recombination (3). Many transposases and integrases form a recombinase family related both by the threedimensional structure of their catalytic domains and by a conserved set of acidic active site residues (4). Bacteriophage Mu transposase is a well studied member of this family.Transposases and integrases promote recombination via either a replicative or cut-and-paste transposition pathway. These pathways share two common steps (see Fig. 1). First, one strand at each element end is hydrolyzed to yield a 3ЈOH at the terminus of the element sequence. This donor cleavage step separates this strand at each element end from the surrounding (or flanking) DNA. In the second common step, called DNA strand transfer or joining, each liberated 3ЈOH directly attacks closely spaced phosphodiester bonds in opposite strands of the DNA at the new location (the target DNA). Mu transposase promotes these two steps during replicative transposition to yield a transposition product in which each transposon end is covalently attached ...