Guinea-pig transglutaminase catalyzes the formation of an amide bond between the y-carboxyl group of peptide-bound glutamine and a variety of amines, including fluorescent or spin-labeled derivatives. A systematic study was conducted with this enzyme in order to establish its usefulness as a protein-labeling technique. Transglutaminase-catalyzed amine incorporation was tested with isolated proteins, intact cells, membrane preparations, and virus particles. It was found that, due to its large molecular weight and its specificity, the transglutaminase reaction is limited to highly exposed glutamine residues. For example, proteins such as tubulin and a,-macroglobulin were modified while immunoglobulins (IgG) from a variety of sources were not, despite their high glutamine content. The peptide hormone glucagon was modified by transglutaminase, which resulted in the loss of hormonal activity.Most of the intact cells were not labeled with transglutaminase.