β-1-N-acetamido-D-glucopyranose (2), a model of N-glycoprotein linkage region, and its benzamido analogue were explored as novel acceptors in transglycosylation catalysed by β-galactosidase from Bacillus circulans. Acceptor ability of 2 was shown to be as good as or better than several O- glycosides employed earlier. Systematic variation of reaction conditions led to improvement of yield from 5 % to 41 %. Interestingly, use of aqueous organic media has led to increased yield of transglycosylation and the 1,3- linked disaccharide was formed in considerable amounts under all the conditions examined.