The effects of mutation of key active-site residues (Arg-47, Tyr-51, in Bacillus megaterium flavocytochrome P450 BM3 were investigated. Kinetic studies on the oxidation of laurate and arachidonate showed that the side chain of Arg-47 contributes more significantly to stabilization of the fatty acid carboxylate than does that of Tyr-51 (kinetic parameters for oxidation of laurate : R47A mutant, K m 859 µM, k cat 3960 min −" ; Y51F mutant, K m 432 µM, k cat 6140 min −" ; wild-type, K m 288 µM, k cat 5140 min −" ). A slightly increased k cat for the Y51F-catalysed oxidation of laurate is probably due to decreased activation energy (∆G ‡ ) resulting from a smaller ∆G of substrate binding. The side chain of Phe-42 acts as a phenyl ' cap ' over the mouth of the substrate-binding channel. With mutant F42A, K m is massively increased and k cat is decreased for oxidation of both laurate (K m 2.08 mM, k cat 2450 min −" ) and arachidonate (K m 34.9 µM, k cat 14 620 min −" ; compared with values of 4.7 µM and 17 100 min −" respectively for wild-type). Amino acid Phe-87 is critical for efficient catalysis. Mutants F87G and F87Y not only exhibit increased K m and decreased k cat values for fatty acid