Nuclear localization of β-catenin is integral to its role in Wnt signaling and cancer. Cellular stimulation by Wnt or lithium chloride (LiCl) inactivates glycogen synthase kinase-3β (GSK-3β), causing nuclear accumulation of β-catenin and transactivation of genes that transform cells. β-catenin is a shuttling protein; however, the mechanism by which GSK-3β regulates β-catenin nuclear dynamics is poorly understood. Here, fluorescence recovery after photobleaching assays were used to measure the β-catenin-green fluorescent protein dynamics in NIH 3T3 cells before and after GSK-3β inhibition. We show for the first time that LiCl and Wnt3a cause a specific increase in β-catenin nuclear retention in live cells and in fixed cells after detergent extraction. Moreover, LiCl reduced the rate of nuclear export but did not affect import, hence biasing β-catenin transport toward the nucleus. Interestingly, the S45A mutation, which blocks β-catenin phosphorylation by GSK-3β, did not alter nuclear retention or transport, implying that GSK-3β acts through an independent regulator. We compared five nuclear binding partners and identified LEF-1 as the key mediator of Wnt3a and LiCl-induced nuclear retention of β-catenin. The canonical Wnt/β-catenin signaling pathway controls the transcription of genes that function during normal and malignant development (1,2). Signaling through β-catenin is regulated by modulation of its degradation and nuclear translocation. In the absence of Wnt signaling, cellular β-catenin is tightly maintained at low levels via rapid degradation by the ubiquitin-proteasome system. This normal regulation involves phosphorylation of the β-catenin N-terminus by casein kinase I (CK1) at S45, priming the sequential phosphorylation of T41, S37 and S33 by glycogen synthase kinase-3β (GSK-3β) in a multiprotein complex comprising adenomatous polyposis coli (APC) protein and axin (1,2). The phosphorylation of β-catenin tags it for ubiquitination and proteosome-mediated degradation. In the presence of Wnt ligand, however, a complex between Frizzled receptor and LRP5/6 is formed that disrupts axin-GSK3β association required for phosphorylation of β-catenin, resulting in its stabilization and translocation into the nucleus (3). Similarly, mutations in the APC, axin or β-catenin genes (4,5), likewise lead to nuclear accumulation of stable β-catenin. In the nucleus, β-catenin binds and activates lymphoid enhancer-binding factor-1/T-cell factor (LEF-1/TCF) and other transcription factors (6) leading to stimulated transcription of Wnt target genes frequently misregulated in human tumors including cyclin D1, c-myc and metalloproteases (1,7,8).Immunohistochemical studies on human tumors reveal increased nuclear β-catenin at the invasive front of differentiated mesenchyme-like tumors, whereas in the central areas of primary tumors β-catenin is located at membrane junctions and cytoplasm (8). This localization pattern can be a useful diagnostic tool, in that a study on colorectal cancers described a progressive increase in nucl...