The BglG protein positively regulates expression of the bgl operon in Escherichia coli by binding as a dimer to the bgl transcript and preventing premature termination of transcription in the presence of -glucosides. BglG activity is negatively controlled by BglF, the -glucoside phosphotransferase, which reversibly phosphorylates BglG according to -glucoside availability, thus modulating its dimeric state. BglG consists of an RNAbinding domain and two homologous domains, PRD1 and PRD2. Based on structural studies of a BglG homologue, the two PRDs fold similarly, and the interactions within the dimer are PRD1-PRD1 and PRD2-PRD2. We have recently shown that the affinity between PRD1 and PRD2 of BglG is high, and a fraction of the BglG monomers folds in the cell into a compact conformation, in which PRD1 and PRD2 are in close proximity. We show here that both BglG forms, the compact and noncompact, bind to the active site-containing domain of BglF, IIB bgl , in vitro. The interaction of BglG with IIB bgl or BglF is mediated by PRD2. Both BglG forms are detected as phosphorylated proteins after in vitro phosphorylation with IIB bgl and are dephosphorylated by BglF in vitro in the presence of -glucosides. Nevertheless, genetic evidence indicates that the interaction of IIB bgl and BglF with the compact form is seemingly less favorable. Using in vivo cross-linking, we show that BglF enhances folding of BglG into a compact conformation, whereas the addition of -glucosides reduces the amount of this form. Based on these results we suggest a model for the modulation of BglG conformation and activity by BglF.The expression of the bgl operon in Escherichia coli, whose products are required for -glucoside utilization, is regulated by two of its gene products, BglG, a transcriptional regulator, and BglF, a membrane-bound sugar sensor (4). Transcription from the bgl promoter initiates constitutively but, in the absence of -glucosides, most transcripts terminate prematurely at one of the two -independent terminators that flank the first gene of the operon. In the presence of -glucosides, BglG prevents termination of transcription at these sites (20, 26) by binding to specific sites on the bgl transcript, which partially overlap with each of the terminators, and stabilizing an alternative secondary structure of the RNA that enables RNA polymerase to proceed (15). BglG activity is regulated by BglF, an enzyme II of the phosphoenolpyruvate-dependent phosphotransferase system (PTS), which reversibly phosphorylates BglG according to -glucoside availability (1, 3, 25), thus modulating its dimeric state (2). Hence, in the absence of -glucosides, BglG exists as an inactive, phosphorylated monomer, whereas in the presence of -glucosides in the growth medium, BglG exists as an active nonphosphorylated dimer (2). A recent publication from our laboratory demonstrated that BglF recruits BglG to form a precomplex at the cell membrane and releases it to the cytoplasm upon the addition of -glucosides (17).BglG represent a family o...