A nonlinear generalization of the Camassa-Holm equation is investigated. By making use of the pseudoparabolic regularization technique, its local well posedness in Sobolev spaceHS(R)withs>3/2is established via a limiting procedure. Provided that the initial valueu0satisfies the sign condition andu0∈Hs(R) (s>3/2), it is shown that there exists a unique global solution for the equation in spaceC([0,∞);Hs(R))∩C1([0,∞);Hs−1(R)).