Earlier studies have demonstrated a functional link between B56␥-specific protein phosphatase 2A (B56␥-PP2A) and p53 tumor suppressor activity. Upon DNA damage, a complex including B56␥-PP2A and p53 is formed which leads to Thr55 dephosphorylation of p53, induction of the p53 transcriptional target p21, and the inhibition of cell proliferation. Although an enhanced interaction between p53 and B56␥ is observed after DNA damage, the underlying mechanism and its significance in PP2A tumor-suppressive function remain unclear. In this study, we show that the increased interaction between B56␥ and p53 after DNA damage requires ATM-dependent phosphorylation of p53 at Ser15. In addition, we demonstrate that the B56␥3-induced inhibition of cell proliferation, induction of cell cycle arrest in G 1 , and blockage of anchorage-independent growth are also dependent on Ser15 phosphorylation of p53 and p53-B56␥ interaction. Taken together, our results provide a mechanistic link between Ser15 phosphorylation-mediated p53-B56␥ interaction and the modulation of p53 tumor suppressor activity by PP2A. We also show an important link between ATM activity and the tumor-suppressive function of B56␥-PP2A.Protein phosphatase 2A (PP2A) is a very important family of holoenzyme complexes that functions within a diversity of signaling pathways inside the cell (9,21,26,27). PP2A consists of either a core complex containing a catalytic (C) subunit and scaffolding (A) subunit (29) or a trimer containing the AC core with one of many possible regulatory (B) subunits bound to it (30). The known B subunits have been divided into four gene families based on sequence homology: the B (B55 or PR55), BЈ (B56 or PR61), BЉ (PR48/59/72/130), and Bٞ (PR93/110) families (25). Each of these many B subunits can combine with the PP2A core to form complexes with distinct activities and substrate specificities. As such, PP2A is able to perform various functions in multiple regulatory pathways, depending on which B subunit is bound.In the past, PP2A was thought to have primarily dull housekeeping functions inside the cell. Recent studies, however, suggest that PP2A may have more-active regulatory roles and may actually function as a tumor suppressor under certain conditions. It is believed that a small subset of B subunits is most likely responsible for promoting this function of PP2A. In support of this view, at least two B56 subunit family members have been implicated in conferring tumor-suppressive functions on the holoenzyme. The B56 family consists of five different genes, ␣ (PPP2R5A),  (PPP2R5B), ␥ (PPP2R5C), ␦ (PPP2R5D), and ε (PPP2R5E) (5, 16). In addition, the B56␥ gene encodes four differentially spliced forms, PP2A B56␥1, -␥2, -␥3 and -␥4 (17, 19). B56␦-specific PP2A was shown to function in a mitotic checkpoint in Xenopus laevis (15) and B56␥3-specific PP2A in blocking the proliferation of lung cancer cell lines (3). Importantly, evidence from our laboratory indicates that B56␥-PP2A participates in the activation of the tumor suppressor protein p53 af...