The transcription factor peroxisome proliferator-activated receptor ␥ (PPAR␥) belongs to the family of nuclear hormone receptors and consists of two isotypes, PPAR␥1 and PPAR␥2. Our earlier studies have shown that troglitazone (TZD)-mediated activation of PPAR␥2 in hepatocytes inhibits growth and attenuates cyclin D1 transcription via modulating CREB levels. Because this process of growth inhibition was also associated with an inhibition of -catenin expression at a post-translational level, our aim was to elucidate the mechanism involved. -Catenin is a multifunctional protein, which can regulate cell-cell adhesion by interacting with Ecadherin and other cellular processes via regulating target gene transcription in association with TCF/LEF transcription factors. Two adenomatous polyposis coli (APC)-dependent proteasomal degradation pathways, one involving glycogen synthase kinase 3 (GSK3) and the other involving p53-Siah-1, degrade excess -catenin in normal cells. Our immunofluorescence and Western blot studies indicated a TZD-dependent decrease in cytoplasmic and membrane-bound -catenin, indicating no increase in its membrane translocation. This was associated with a reduction in E-cadherin expression. PPAR␥2 activation inhibited GSK3 kinase activity, and pharmacological inhibition of GSK3 activity was unable to restore -catenin expression following PPAR␥2 activation. Additionally, this -catenin degradation pathway was operative in cells, with inactivating mutations of both APC and p53. Inhibition of the proteasomal pathway inhibited PPAR␥2-mediated degradation of -catenin, and incubation with TZD increased ubiquitination of -catenin. We conclude that PPAR␥2-mediated suppression of -catenin levels involves a novel APC/ GSK3/p53-independent ubiquitination-mediated proteasomal degradation pathway.