The amyloid precursor protein (APP) undergoes sequential cleavages to generate various polypeptides, including the amyloid- protein (A), which forms amyloid plaques in Alzheimer's disease (AD), secreted APP␣ (sAPP␣) which enhances memory, and the APP intracellular domain (AICD), which has been implicated in the regulation of gene transcription and calcium signaling. The -site APP cleaving enzyme 1 (BACE1) cleaves APP in an activity-dependent manner to form A, AICD, and secreted APP. Because this neural activity was shown to diminish synaptic transmission in vitro [Kamenetz F, Tomita T, Hsieh H, Seabrook G, Borchelt D, Iwatsubo T, Sisodia S, Malinow R (2003) Neuron 37:925-937], the prevailing notion has been that this pathway diminishes synaptic function. Here we investigated the role of this pathway in vivo. We studied transgenic mice overproducing APP that do not develop AD pathology or memory deficits but instead exhibit enhanced spatial memory. We showed enhanced synaptic plasticity in the hippocampus that depends on prior synaptic activity. We found that the enhanced memory and synaptic plasticity are abolished by the ablation of one or both copies of the BACE1 gene, leading to a significant decrease in AICD but not of any other APP cleavage products. In contrast to the previously described negative effect of BACE1-mediated cleavage of APP on synaptic function in vitro, our in vivo work indicates that BACE1-mediated cleavage of APP can facilitate learning, memory, and synaptic plasticity.transgenic ͉ learning A myloid precursor protein (APP) undergoes proteolysis at ␣-, -, ␥-, and -secretase sites to release amino-terminal, internal, and carboxyl-terminal polypeptides, including APP intracellular domain (AICD) [another name for carboxyl-terminal fragment (CTF )] (Fig. 1a). Activity-related regulation of APP cleavage has been proposed at the ␣-and -secretase sites (1, 2), suggesting a physiological role of APP and APP cleavage in the brain. The activation of M1 and M3 muscarinic acetylcholine receptors stimulates ␣-secretase activity and releases secreted APP␣ (sAPP␣) (1), which has been reported to enhance synaptic plasticity and memory (3, 4). Synaptic activity triggers the regulated cleavage of APP through another pathway, by way of -site APP cleaving enzyme 1 (BACE1), followed by ␥-and -secretase, releasing amyloid- protein (A) (2, 5) and AICD. Genetic ablation of APP, BACE1, or presenilin-1, the catalytic component of the ␥-and -secretase complexes, profoundly reduces or eliminates A and AICD production and can lead to impaired memory in mice (6-9). Although the molecular basis of impaired memory in mice lacking APP, BACE1, or presenilin-1 has not been defined, the ablation studies implicate a possible role for A or AICD in normal brain function.Here we address the neuronal function of APP and its cleavage products by characterizing transgenic mice that over express APP but do not develop Alzheimer-like pathology or memory deficits. In mice expressing different amounts of BACE1, we found that...