Cholesterol excess in the brain is mainly disposed via cholesterol 24-hydroxylation catalyzed by cytochrome P450 46A1 (CYP46A1), a CNS-specific enzyme. CYP46A1 is emerging as a promising therapeutic target for various brain diseases with both enzyme activation and inhibition having a therapeutic potential. The rate of cholesterol 24-hydroxylation determines the rate of brain cholesterol turnover and the rate of sterol flux through the plasma membranes. The latter was shown to affect membrane properties and thereby membrane proteins and membrane-dependent processes. Previously we found that treatment of 5XFAD mice, an Alzheimer’s disease model, with a small dose of an anti-HIV drug efavirenz allosterically activated CYP46A1 in the brain and mitigated several disease manifestations. Herein, we generated Cyp46a1-/-5XFAD mice and treated them, along with 5XFAD animals, with efavirenz to ascertain CYP46A1-dependent and independent drug effects. Efavirenz-treated vs control Cyp46a1-/-5XFAD and 5XFAD mice were compared for the brain sterol and steroid hormone content, amyloid β burden, protein and mRNA expression as well as synaptic ultrastructure. We found that the CYP46A1-dependent efavirenz effects included changes in the levels of brain sterols, steroid hormones, and such proteins as GFAP, Iba1, Munc13-1, PSD-95, gephyrin, synaptophysin, and synapsin-1. Changes in the expression of genes involved in neuroprotection, neurogenesis, synaptic function, inflammation, oxidative stress, and apoptosis were also CYP46A1-dependent. The total amyloid β load was the same in all groups of animals, except lack of CYP46A1 decreased the production of the amyloid β40 species independent of treatment. In contrast, altered transcription of genes from cholinergic, monoaminergic, and peptidergic neurotransmission, steroid sulfation and production as well as vitamin D3 activation was the main CYP46A1-independent efavirenz effect. Collectively, the data obtained reveal that CYP46A1 controls cholesterol availability for the production of steroid hormones in the brain and the levels of biologically active neurosteroids. In addition, CYP46A1 activity also seems to affect the levels of PSD-95, the main postsynaptic density protein, possibly by altering the Camk2n1 (calcium/calmodulin dependent protein kinase II inhibitor 1) expression and activity of GSK3β (glycogen synthase kinase 3β). Even at a small dose, efavirenz likely acts as a transcriptional regulator, yet this regulation may not necessarily lead to functional effects. This study further confirmed that CYP46A1 is a key enzyme for cholesterol homeostasis in the brain and that the therapeutic efavirenz effects on 5XFAD mice are likely realized via CYP46A1 activation.