Observations of Golgi fragmentation upon introduction of G protein ␥ (G␥) subunits into cells have implicated G␥ in a pathway controlling the fission at the trans-Golgi network (TGN) of plasma membrane (PM)-destined transport carriers. However, the subcellular location where G␥ acts to provoke Golgi fragmentation is not known. Additionally, a role for G␥ in regulating TGN-to-PM transport has not been demonstrated. Here we report that constitutive or inducible targeting of G␥ to the Golgi, but not other subcellular locations, causes phospholipase C-and protein kinase D-dependent vesiculation of the Golgi in HeLa cells; Golgi-targeted  1 ␥ 2 also activates protein kinase D. Moreover, the novel G␥ inhibitor, gallein, and the G␥-sequestering protein, GRK2ct, reveal that G␥ is required for the constitutive PM transport of two model cargo proteins, VSV-G and ss-HRP. Importantly, Golgi-targeted GRK2ct, but not a PM-targeted GRK2ct, also blocks protein transport to the PM. To further support a role for Golgi-localized G␥, endogenous G was detected at the Golgi in HeLa cells. These results are the first to establish a role for Golgi-localized G␥ in regulating protein transport from the TGN to the cell surface.Heterotrimeric G proteins, composed of ␣, , and ␥ subunits, are involved in a wide variety of signaling responses and act by coupling heptahelical G protein-coupled receptors (GPCRs) 2 to intracellular effector proteins. In its inactive state, the G␣ subunit is bound to GDP and is also tightly bound to the G␥ subunits. Upon receptor activation by ligand binding, the GPCR catalyzes the exchange of GDP for GTP on the G␣, resulting in dissociation of G␣ and G␥. The separated subunits are then able to elicit their own signaling cascades. Hydrolysis of GTP by G␣, followed by re-association of G␣ and G␥, completes the cycle (1, 2).