Allele-specific distinctions in the human apolipoprotein E (
APOE
) locus represent the best-characterized genetic predictor of Alzheimer's disease (AD) risk. Expression of isoform
APOE
ε2 is associated with reduced risk, while
APOE
ε3 is neutral and
APOE
ε4 carriers exhibit increased susceptibility. Using
Caenorhabditis elegans
, we generated a novel suite of humanized transgenic nematodes to facilitate neuronal modeling of amyloid-beta peptide (Aβ) co-expression in the context of distinct human
APOE
alleles. We found that co-expression of human
APOE
ε2 with Aβ attenuated Aβ-induced neurodegeneration, whereas expression of the
APOE
ε4 allele had no effect on neurodegeneration, indicating a loss of neuroprotective capacity. Notably, the
APOE
ε3 allele displayed an intermediate phenotype; it was not neuroprotective in young adults but attenuated neurodegeneration in older animals. There was no functional impact from the three
APOE
isoforms in the absence of Aβ co-expression. Pharmacological treatment that examined neuroprotective effects of
APOE
alleles on calcium homeostasis showed allele-specific responses to changes in ER-associated calcium dynamics in the Aβ background. Additionally, Aβ suppressed survival, an effect that was rescued by
APOE
ε2 and
APOE
ε3, but not
APOE
ε4. Expression of the
APOE
alleles in neurons, independent of Aβ, exerted no impact on survival. Taken together, these results illustrate that
C. elegans
provides a powerful
in vivo
platform with which to explore how AD-associated neuronal pathways are modulated by distinct
APOE
gene products in the context of Aβ-associated neurotoxicity. The significance of both ApoE and Aβ to AD highlights the utility of this new pre-clinical model as a means to dissect their functional inter-relationship.