A novel cytochrome P450 enzyme TxtE was recently shown to catalyze the direct aromatic nitration of L-tryptophan. This unique chemistry induced us to ask whether TxtE could serve as a platform for engineering new nitration biocatalysts, as a replacement for current harsh synthetic methods. As a first step toward this goal and to better understand the wild-type enzyme, we have obtained high-resolution structures of TxtE in its substrate-free and substrate-bound forms. We have also screened a library of substrate analogs for spectroscopic indicators of binding and for production of nitrated products. From these results, we find that the wild-type enzyme accepts moderate decoration of the in dole ring, but the amino acid moiety is crucial for binding and correct positioning of the substrate and therefore less amenable to modification. A carbonyl must be present to recruit the αB′1 helix of the protein to seal the binding pocket, and a nitrogen atom is essential for catalysis.