Rac1, a Rho GTPase family member, is dysregulated in a variety of tumor types including gastric adenocarcinoma (GA), but little is known about its role in cancer stem-like cells (CSCs). Therefore, Rac1 activity and inhibition were examined in GA cells and mouse xenograft models for epithelial-to-mesenchymal transition (EMT) and CSC phenotypes. Rac1 activity was significantly higher in spheroid-forming or CD44(+) GA CSCs compared to unselected cells. Rac1 inhibition using Rac1 shRNA or a Rac1 inhibitor (NSC23766) decreased expression of the self-renewal transcription factor, Sox-2, decreased spheroid formation by 78–81%, and prevented tumor initiation in immunodeficient mice. GA CSCs had increased expression of the EMT transcription factor Slug, 4.4–8.3 fold greater migration, and 4.2–12.6 fold greater invasion than unselected cells, and these increases could be blocked completely with Rac1 inhibition. GA spheroid cells were resistant to 5-fluorouracil and cisplatin chemotherapy, and this chemotherapy resistance could be reversed with Rac1 shRNA or NSC23766. The PI3K/Akt pathway may be upstream of Rac1, and JNK may be downstream of Rac1. In the MKN-45 xenograft model, cisplatin inhibited tumor growth by 50%, Rac1 inhibition by 35%, and the combination by 77%. Higher Rac1 activity, in clinical specimens from GA patients who underwent potentially curative surgery, correlated with significantly worse survival (p=0.017). In conclusion, Rac1 promotes the EMT program in GA and the acquisition of a CSC state. Rac1 inhibition in GA cells blocks EMT and CSC phenotypes, and thus may prevent metastasis and augment chemotherapy.