We have investigated the role of MSH2, a mismatch repair gene in cell proliferation, cell cycle control and cell invasiveness in the SW480 human colorectal cancer cell line. RNAi-mediated inhibition of MSH2 expression was achieved using MSH2 shRNA lentiviral expression vectors. Effective knockdown of endogenous MSH2 expression was determined by real-time PCR analysis. The most efficient MSH2 knockdown vector was selected for subsequent studies using SW480 cells. Endogenous MSH2 mRNA levels decreased after lentiviral delivery of the MSH2-RNAi, indicating efficient silencing of MSH2 expression in SW480 cells. Cell proliferation, cell cycle progression and cell invasiveness were quantified by MTT assays, flow cytometry and transwell assays, respectively. RNAi-mediated inhibition of MSH2 expression in SW480 cells resulted in decreased cell proliferation, cell cycle arrest at the G0/G1 phase and decreased cell invasiveness. Taken together, these results provide evidence that MSH2 stimulates cell proliferation, promotes cell cycle progression and positively regulates cell invasiveness.