An extracellular P-glucosidase from Fusarium oxysporum was purified to homogeneity by gelfiltration and ion-exchange chromatographies. The enzyme, a monomeric protein of 11 0 kDa, was maximally active at pH 5.0-6.0 and at 60°C. It hydrolysed l-+4-linked aryl-p-glucosides and 1-4-linked, 1-3-linked and 1+6-linked P-glucosides. The apparent K, and k,, values for p-nitrophenyl ,8-D-glucopyranoside (4-NpGlcp) and cellobiose were 0.093 (K,,,), 1.07 mM (kcat) and 1802 (Km), 461.5 min-' (k,,,), respectively. Glucose and gluconolactone inhibited the enzyme competitively with K, values of 2.05 mM and 3.03 pM, respectively. Alcohols activated the enzyme; butanol showed maximum effect (2.2-fold at 0.5 M) while methanol increased the activity by 1.4-fold at 1 M. The enzyme catalysed the synthesis of methylglucosides, ethylglucoside and propylglucosides, as well as trisaccharides in the presence of different alcohols and disaccharides, respectively. In addition, the enzyme hydrolysed the unsubstituted and methylumbelliferyl cello-oligosaccharides [MeUmb(Glc),] but the rate of hydrolysis decreased with increasing chain length. Analysis of products released from MeUmb(Glc), as a function of time revealed that the enzyme attacked these substrates in a stepwise manner and from both ends. Thus, P-glucosidase from E oxysporum, with the above interesting properties, could be of commercial interest.Many fungi, including Fusarium oxysporum, when grown on cellulose, produce endoglucanase [endo-(l+4)-& D-glucanase], exoglucanase [exo-(I -4)-P-~-glucanase) and P-glucosidase (cellobiase or P-D-glucohydrolase) [ 1 -61. Of these, endoglucanases and exoglucanases act synergistically to effect extensive solubilization of crystalline cellulose [7, 81. This suggested that P-glucosidase has no direct role in cellulolysis. Based on in vitro saccharification, Sternberg [9] reported that the addition of P-glucosidase from Aspergillus niger to the cellulase preparation of Trichoderma reesei stimulated the rate and extent of cellulose hydrolysis by relieving