δ-Catenin is a neuronal protein that contains 10 Armadillo motifs and binds to the juxtamembrane segment of classical cadherins. We report that δ-catenin interacts with cortactin in a tyrosine phosphorylation–dependent manner. This interaction occurs within a region of the δ-catenin sequence that is also essential for the neurite elongation effects. Src family kinases can phosphorylate δ-catenin and bind to δ-catenin through its polyproline tract. Under conditions when tyrosine phosphorylation is reduced, δ-catenin binds to cortactin and cells extend unbranched primary processes. Conversely, increasing tyrosine phosphorylation disrupts the δ-catenin–cortactin complex. When RhoA is inhibited, δ-catenin enhances the effects of Rho inhibition on branching. We conclude that δ-catenin contributes to setting a balance between neurite elongation and branching in the elaboration of a complex dendritic tree.