The beta-subunit of Na,K-ATPase (betaNK) interacts with the catalytic alpha-subunit (alphaNK) in the ectodomain, the transmembrane, and the cytoplasmic domain. The functional significance of these different interactions was studied by expressing alphaNK in Xenopus oocytes along with N-terminally modified betaNK or with chimeric betaNK/betaH,K-ATPase (betaHK). Complete truncation of the betaNK N terminus allows for cell surface-expressed, functional Na,K-pumps that exhibit, however, reduced apparent K+ and Na+ affinities as assessed by electrophysiological measurements. A mutational analysis suggests that these functional effects are not related to a direct interaction of the beta N terminus with the alphaNK but rather that N-terminal truncation induces a conformational change in another functionally relevant beta domain. Comparison of the functional properties of alphaNK.betaNK, alphaNK.betaHK, or alphaNK. betaNK/betaHK complexes shows that the effect of the betaNK on K+ binding is mainly mediated by its ectodomain. Finally, betaHK/NK containing the transmembrane domain of betaHK produces stable but endoplasmic reticulum-retained alphaNK.beta complexes, while alphaNK/betaHK complexes can leave the ER but exhibit reduced ouabain binding capacity and transport function. Thus, interactions of both the transmembrane and the ectodomain of betaNK with alphaNK are necessary to form correctly folded Na,K-ATPase complexes that can be targeted to the plasma membrane and/or become functionally competent. Furthermore, the beta N terminus plays a role in the beta-subunit's folding necessary for correct interactions with the alpha-subunit.