Duramycin is a heavily post-translationally modified peptide that binds phosphatidylethanolamine. It has been investigated as an antibiotic, inhibitor of viral entry, therapeutic for cystic fibrosis, and tumor and vasculature imaging agent. Duramycin contains a β-hydroxylated Asp (Hya) and four macrocycles, including an essential lysinoalanine (Lal) crosslink. The mechanism of Lal formation is not known. We here show that Lal is installed stereospecifically by DurN via addition of Lys19 to a dehydroalanine. The structure of DurN reveals an unusual dimer with a new fold. Surprisingly, in the structure of duramycin bound to DurN, no residues of the enzyme are near the Lal. Instead, Hya15 of the substrate makes interactions with Lal suggesting it acts as a base to deprotonate Lys19 during catalysis. Biochemical data suggest that DurN preorganizes the reactive conformation of the substrate, such that the Hya15 of the substrate can serve as the catalytic base for Lal formation. Duramycin and closely related compounds are ribosomally synthesized and post-translationally modified peptides (RiPPs) produced by various actinomycetes 1-5 and marine symbionts 6 . Duramycin binds phosphatidylethanolamine (PE), a major structural phospholipid in mammalian and microbial cell membranes 7, 8 . Duramycin contains 19 amino acids, and five final posttranslational modifications (PTMs), including one lanthionine (Lan), two methyllanthionines (MeLan), an erythro-3-hydroxy-L-aspartic acid (Hya) resulting from the hydroxylation of Asp15, and one (2S,9S)-Lal (Figure 1). The carboxylate and hydroxyl groups of Hya15 make key interactions with the ethanolamine head group of PE, providing