A ketone monooxygenase was purified from cells of Pseudomonas cepacia grown on 2-tridecanone as sole carbon source. Enzyme stability is maintained by the addition of ethanol, EDTA, and dithiothreitol. Stoichiometric studies show that for 1 mol of undecyl acetate formed, 1 mol of O2 is consumed and 1 mol of NADPH is oxidized. The monooxygenase, purified to homogeneity, has a molecular weight of approximately 123,000 and consists of two equal subunits with molecular weights of 55,000. The enzyme contains FAD and exhibits absorption maxima at 375 and 488 nm. Enzyme activity is inhibited by thiol-active reagents and the inhibition by the cations, cadmium, copper, zinc, and mercury, is reversed by dithiothreitol, indicating the presence of essential sulfhydryl groups. Substrate specificity tests show that acetate esters are formed from methyl ketones from C-7 through C-14. The oxygenase is also active on isomers of 2-tridecanone forming esters from 3- through 7-tridecanone. With 6-tridecanone, two esters are formed, heptyl hexanoate and pentyl octanoate, indicating that oxygen is inserted on either side of the carbonyl group. In addition, the enzyme catalyzes the lactonization of the cyclic ketone, cyclopentanone, with the formation of 5-valerolactone.