Hepatocyte function is regulated by members of the fibroblast growth factor (FGF) family of proteins, but little is known about the specific molecular mechanisms of this endocrine pathway. FGF19 regulates bile acid homeostasis and gall bladder filling; FGF19 binds only to FGF receptor 4 (FGFR4), but its liver-specific activity cannot be explained solely by the distribution of this receptor. Although it has been suggested that Klotho beta (KLB) may have a role in mediating FGF19 activity, we have provided for the first time definitive evidence that KLB is required for FGF19 binding to FGFR4, intracellular signaling, and downstream modulation of gene expression. We have shown that FGFR4 is widely distributed in mouse, whereas KLB distribution is more restricted. Liver was the only organ in which both genes were abundantly expressed. We show that in mice, FGF19 injection triggers liver-specific induction of c-Fos and repression of CYP7A1. The tissue-specific activity of FGF19 supports the unique intersection of KLB and FGFR4 distribution in liver. These studies define KLB as a novel FGFR4 coreceptor required for FGF19 liver specific functions.Bile acids are amphipathic cholesterol metabolites essential for the absorption of lipophilic nutrients and cholesterol homeostasis (1). They are synthesized by the liver and stored in the gall bladder (2). The cycle of gallbladder filling and emptying controls the flow of bile into the intestine for digestion. Because bile acid accumulation can lead to hepatotoxicity and cholestasis, this process is tightly regulated (3) by a negative feedback mechanism. Bile acids bind to the farnesoid X receptor, a member of the nuclear receptor family of ligand-regulated transcription factors, which is highly expressed in liver and intestine. In the liver, farnesoid X receptor activation represses the transcription of cholesterol 7␣-hydroxylase (CYP7A1), 2 a rate-limiting enzyme in the biosynthesis of bile acids (4, 5). In the small intestine, bile acid activation of farnesoid X receptor induces the expression of fibroblast growth factor 15 (FGF15; mouse orthologue of human FGF19). The secreted FGF15 signals from the intestine to the liver to repress CYP7A1 expression through a FGF receptor 4 (FGFR4)-mediated mechanism (6). In addition, the FGF15/FGF19 feedback loop prevents bile excretion into the digestive tract by promoting gallbladder filling (7).The role of FGF15/FGF19 in bile acid homeostasis is supported by the increased liver CYP7A1 expression and decreased gallbladder volume that occurs in FGF15-deficient mice (FGF15 Ϫ/Ϫ mice) and in FGFR4-deficient mice (FGFR4