We showed that the ␣-CH 2 → NH substitution in octanoyl-CoA alters the ground and transition state energies for the binding of the CoA ligands to medium-chain acyl-CoA dehydrogenase (MCAD), and such an effect is caused by a small electrostatic difference between the ligands. To ascertain the extent that the electrostatic contribution of the ligand structure and/or the enzyme site environment modulates the thermodynamics of the enzyme-ligand interaction, we undertook comparative microcalorimetric studies for the binding of 2-azaoctanoyl-CoA (␣-CH 2 → NH substituted octanoyl-CoA) and octenoyl-CoA to the wild-type and Glu-376 → Gln mutant enzymes. The experimental data revealed that both enthalpy (⌬H°) and heat capacity changes (⌬C p°) for the binding of 2-azaoctanoyl-CoA (⌬H°2 98 ס −21.7 ± 0.8 kcal/mole, ⌬C p°ס −0.627 ± 0.04 kcal/mole/K) to the wild-type MCAD were more negative than those obtained for the binding of octenoyl-CoA (⌬H°2 98 ס −17.2 ± 1.6 kcal/mole, ⌬C p°ס −0.526 ± 0.03 kcal/mole/K). Of these, the decrease in the magnitude of ⌬C p°f or the binding of 2-azaoctanoyl-CoA (vis-à-vis octenoyl-CoA) to the enzyme was unexpected, because the former ligand could be envisaged to be more polar than the latter. To our further surprise, the ligand-dependent discrimination in the above parameters was completely abolished on Glu-376 → Gln mutation of the enzyme. Both ⌬H°and ⌬C p°v alues for the binding of 2-azaoctanoylCoA (⌬H°2 98 ס −13.3 ± 0.6 kcal/mole, ⌬C p°ס −0.511 ± 0.03 kcal/mole/K) to the E376Q mutant enzyme were found to be correspondingly identical to those obtained for the binding of octenoyl-CoA (⌬H°2 98 ס −13.2 ± 0.6 kcal/mole, ⌬C p°ס −0.520 ± 0.02 kcal/mole/K). However, in neither case could the experimentally determined ⌬C p°v alues be predicted on the basis of the changes in the water accessible surface areas of the enzyme and ligand species. Arguments are presented that the origin of the above thermodynamic differences lies in solvent reorganization and water-mediated electrostatic interaction between ligands and enzyme site groups, and such interactions are intrinsic to the molecular basis of the enzyme-ligand complementarity.