The canonical Wnt/-catenin pathway plays a pivotal role in regulating embryogenesis and tumorigenesis by promoting cell proliferation. BAMBI (BMP and activin membrane-bound inhibitor) has previously been shown to negatively regulate the signaling activity of transforming growth factor-, activin, and BMP and was identified as a target of -catenin in colorectal and hepatocellular tumor cells. In this study, we provide evidence that BAMBI can promote the transcriptional activity of Wnt/-catenin signaling. Overexpression of BAMBI enhances the expression of Wnt-responsive reporters, whereas knockdown of endogenous BAMBI attenuates them. Accordingly, BAMBI also promotes the nuclear translocation of -catenin. BAMBI interacts with Wnt receptor Frizzled5, coreceptor LRP6, and Dishevelled2 and increases the interaction between Frizzled5 and Dishevelled2. Finally we show that BAMBI promotes the expression of c-myc and cyclin D1 and increases Wnt-promoted cell cycle progression. Altogether, our data indicate that BAMBI can function as a positive regulator of the Wnt/-catenin pathway to promote cell proliferation.Wnt signaling is initiated by binding to its seven-transmembrane receptor, Frizzled (Fzd), 2 and single-span transmembrane coreceptor low density lipoprotein receptor-related protein 5 and 6 (LRP5/6) (1-4). Dishevelled (Dvl) and -catenin play an essential role in the canonical Wnt signaling. In the absence of Wnt proteins, -catenin is phosphorylated (5-11) and ubiquitinated and then targeted for proteasome-mediated degradation by a cytoplasmic destruction complex consisting of adenomatous polyposis coli, Axin, glycogen synthase kinase 3 (GSK3), and casein kinase 1. The binding of Wnt ligands to the receptors results in the recruitment of Dvl to the plasma membrane and therefore the disassembly of the destructive complex, leading to the accumulation and nuclear translocation of -catenin, which collaborates with the transcription factors of the lymphoid enhancer-binding factor (LEF)/T-cell factor (TCF) family and activates the transcription of Wnt target genes.The Wnt signaling pathway plays key roles in embryogenesis and adult homeostasis and is aberrantly activated in various human cancers (3, 4). For instance, in most of colorectal cancers, -catenin is stabilized and accumulated in the nucleus and constitutively activates its target genes (12, 13). A wide spectrum of -catenin targets, such as the proteins involved in cell cycle, cell-matrix interactions, migration, and invasion, has been identified (14 -16). One of such targets is BAMBI (BMP and activin membrane-bound inhibitor), which has been found to be directly up-regulated by the functional -catenin-TCF4 complex in colorectal tumor cells (17).The BAMBI gene encodes a 260-amino acid transmembrane protein that is evolutionally conserved in vertebrates, from fish to human (18 -22). The BAMBI protein is closely related to type I receptors of the transforming growth factor- (TGF-) family in the extracellular domain but has a short intracellular doma...