Exchanging the identity of amino acids at four key locations within the Arabidopsis thaliana oleate desaturase (FAD2) and the Lesquerella fendleri hydroxylase/ desaturase (LFAH) was shown to influence partitioning between desaturation and hydroxylation (Broun, P., Shanklin, J., Whittle, E., and Somerville, C. (1998) Science 282, 1315-1317). We report that four analogous substitutions in the FAD2 sequence by their equivalents from the castor oleate hydroxylase result in hydroxy fatty acid accumulation in A. thaliana to the same levels as for the wild-type castor hydroxylase. We also describe the relative contribution of these substitutions, both individually and in combination, by analyzing the products resulting from their expression in A. thaliana and/or Saccharomyces cerevisiae. Yeast expression showed that M324V, a change reachable by a single point mutation, altered the product distribution ϳ49-fold, and that residue 148 is also a predominant determinant of reaction outcome. Comparison of residues at position 148 of FAD2, LFAH, and the Ricinus oleate hydroxylase prompted us to rationally engineer LFAH-N149I, a variant with ϳ1.9-fold increase in hydroxylation specificity compared with that of wild-type LFAH. Control experiments showed that the wild-type Arabidopsis thaliana FAD2 desaturase has inherent, low level, hydroxylation activity. Further, fatty acid desaturases from different kingdoms and with different regiospecificities exhibit similar intrinsic hydroxylase activity, underscoring fundamental mechanistic similarities between desaturation and hydroxylation. For LFAH mutants the hydroxylation:desaturation ratio is 5-9-fold higher for 18-carbon versus 16-carbon substrates, supporting our hypothesis that substrate positioning in the active site plays a key role in the partitioning of catalytic specificity.Hydroxy fatty acids are unusual fatty acids that are incorporated into seed triacylglycerols in several species of plants, the best characterized being Ricinus communis (castor) and Lesquerella fendleri (1, 2). In both of these plants, an oleate hydroxylase enzyme catalyzes the hydroxylation chemistry that converts oleate (cis-9-octadecenoic acid, or 18:1⌬ 9 ) to rici- (1), and Lesquerella, LFAH (2), are closely related to the common plant oleate desaturase enzyme (FAD2), which converts oleate (18:1 ⌬ 9 ) into linoleate (18:2⌬ 9,12 ). Indeed, LFAH actually retains both hydroxylase and desaturase activity, indicating that these two oxidation reactions can be catalyzed by the same enzyme. Amino acid sequence alignments (Table I) of these two oleate hydroxylases with several oleate desaturases indicated that there are only a few conserved desaturase residues that are not conserved in the hydroxylases (3). These seven residues (Arabidopsis thaliana FAD2 residues 63, 104, 148, 217, 295, 322, and 324) 3 were replaced with the corresponding residues of LFAH, and the resulting enzyme (designated m7FAD2 in Ref.3) was found to be sufficient to convert the desaturase into a bifunctional desaturase/hydroxylase. ...