␤-catenin is a component of stable cell adherent complexes whereas its free form functions as a transcription factor that regulate genes involved in oncogenesis and metastasis. Free ␤-catenin is eliminated by two adenomatous polyposis coli (APC)-dependent proteasomal degradation pathways regulated by glycogen synthase kinase 3␤ (GSK3␤) or p53-inducible Siah-1. Dysregulation of ␤-catenin turnover consequent to mutations in critical genes of the APC-dependent pathways is implicated in cancers such as colorectal cancer. We have identified a novel retinoid X receptor (RXR)-mediated APC-independent pathway in the regulation of ␤-catenin. In this proteasomal pathway, RXR agonists induce degradation of ␤-catenin and RXR␣ and repress ␤-catenin-mediated transcription. In vivo, ␤-catenin interacts with RXR␣ in the absence of ligand, but RXR agonists enhanced the interaction. RXR agonist action was not impaired by GSK3␤ inhibitors or deletion of the GSK3␤-targeted sequence from ␤-catenin. In APC-and p53-mutated colorectal cancer cells, RXR agonists still inactivated endogenous ␤-catenin via RXR␣. Interestingly, deletion of the RXR␣ A/B region abolished ligand-induced ␤-catenin degradation but not RXR␣-mediated transactivation. RXR␣-mediated inactivation of oncogenic ␤-catenin paralleled a reduction in cell proliferation. These results suggest a potential role for RXR and its agonists in the regulation of ␤-catenin turnover and related biological events.