Loss of E-cadherin function has been reported to be associated with progression and poor prognosis of liver cancer. However, the precise role of E-cadherin in liver cancer development has not been elucidated. Thus, we generated liver-specifi c E-cadherin ( Cdh1 ) knockout mice ( Cdh1 ∆ Liv ) by crossing Cdh1 fl ox/fl ox mice with albumin-Cre transgenic mice. Interestingly, Cdh1 ∆ Liv mice developed spontaneous infl ammation in the portal areas, and then developed periductal onion skin-like fi brosis, which resembled primary sclerosing cholangitis. Microarray analysis showed that expression of stem cell markers such as CD44 and Sox9, and infl ammatory cytokines such as IL-6 and TNF-α, are increased in Cdh1 ∆ Liv liver compared with Cdh1 fl ox/fl ox liver. To investigate the role of E-cadherin in the liver tumorigenesis, we crossed Cdh1 ∆ Liv mice with lox-stop-lox Kras G12D mice ( Kras + Cdh1 ∆ Liv ). Kras + Cdh1 ∆ Liv mice developed liver tumors at age 28 weeks (8/8, 100 %), whereas Kras + Cdh1 fl ox/+ mice did not develop any tumors. Histologically, these tumors were hepatocellular carcinomas with a small proportion of ductal lesions and strongly positive for progenitor cell markers such as CD44 and Sox9. Interestingly, epithelial to mesenchymal transition (EMT) was found in the tumors of Kras + Cdh1 ∆ Liv mice. We also found that diethylnitrosamine-induced tumorigenesis was signifi cantly accelerated in Cdh1 ∆ Liv mice. In summary, loss of E-cadherin in the liver leads to sclerosing cholangitis and promotes tumorigenesis. Its tumor-promoting function seemed to be caused by gain of stem cell properties as well as induction of EMT.