Background: XIAP E3 ligase induces mitochondrial membrane permeabilization, resulting in intramitochondrial degradation of its inhibitor Smac. Results: Mitochondrial XIAP action is triggered by drug inducers of apoptosis and occurs before Drp1-mediated cytochrome c release. Conclusion: Pre-activation of mitochondrial XIAP action can protect against caspase activation. Significance: Mitochondrial processing by XIAP constitutes a new antagonistic component of intrinsic apoptosis signaling.