Japan c FK506, structurally similar to FK520 and rapamycin, is an ␣-keto amide bonding-containing, macrolide natural product that exhibits potent immunosuppressive activity and moderate antifungal activity. FK506 biosynthesis requires a hybrid polyketide synthase (PKS)-nonribosomal peptide synthetase (NRPS) system to construct the skeleton of the macrolide. The mechanism for tailoring this macrolide to furnish FK506 remains poorly understood. In this study, we report a maturation paradigm common for FK506, FK520, and rapamycin, by characterizing two conserved regiospecific, post-PKS-NRPS modifications in an FK506-producing Streptomyces tsukubaensis strain. A cytochrome P450 protein, FkbD, catalyzes a less common, four-electron oxidation at C-9 to give a rarely found ␣-keto amide group, whereas a methyltransferase, FkbM, is responsible for O-methylation at C-31 to afford a methoxy group. Both FkbD and FkbM are highly tolerant in their substrate choice; therefore, the order of FkbDand FkbM-catalyzed reactions is interchangeable in the FK506 biosynthetic pathway. Inactivation of fkbD produced a new intermediate, 9-deoxo-FK506, which displayed antifungal activity lower than that of FK506. Taking previously reported bioassay results regarding the intermediates 9-deoxo-31-O-demethyl-FK506 and 31-O-demethyl-FK506 into account, it is clear that the modifications catalyzed by FkbD and FkbM are of importance to reach the full biological activity of FK506 by forming a key structure motif that is necessary for interaction of the molecule with the receptor and, subsequently, the downstream intracellular responses. (1), is an immunosuppressive drug that is widely used in clinics to reduce a patient's immune activity against allogeneic organ transplant. It interacts with a receptor, known as FK506 binding protein 12 (FKBP12), to form an FK506-FKBP12 complex. The complex then targets calcineurin and inhibits its calmodulin-dependent Ser/Thr phosphatase activity (2), leading to the arrest of T cell proliferation at the G 0 -G 1 stage in mammal (3). This calcineurin-based action also has an adverse effect on the growth of various fungi, therefore endowing FK506 with moderate antifungal activity (4, 5). FK506 is an ␣-keto amide bondcontaining, macrolide natural product structurally similar to FK520 (coproduct of FK506 in S. tsukubaensis) and rapamycin but distinct in the ring size and appended functionalities (Fig. 1A). The entire biosynthetic gene cluster of FK506 was recently cloned and characterized (6, 7), allowing for comparative analysis with those of FK520 (8) and rapamycin (9) to account for their generality and specificity in biosynthesis.FK506 biosynthesis involves a hybrid polyketide synthase (PKS)-nonribosomal peptide synthetase (NRPS) system to construct the 23-membered macrolide (10). FkbABC, which are type I PKSs, assemble the polyketide backbone by using 4,5-dihydroxycyclohex-1-enecarboxylic acid, a chorismate derivative, as a starter unit (11). The NRPS FkbP is responsible for extending the resulting linear polyk...