Glycogen synthase kinase 3 (GSK-3) represses cell cycle progression by directly phosphorylating cyclin D1 and indirectly regulating cyclin D1 transcription by inhibiting Wnt signaling. Recently, we reported that the Epm2a-encoded laforin is a GSK-3 phosphatase and a tumor suppressor. The cellular mechanism for its tumor suppression remains unknown. Using ex vivo thymocytes and primary embryonic fibroblasts from Epm2a ؊/؊ mice, we show here a general function of laforin in the cell cycle regulation and repression of cyclin D1 expression. Moreover, targeted mutation of Epm2a increased the phosphorylation of Ser9 on GSK-3 while having no effect on the phosphorylation of Ser21 on GSK-3␣. In the GSK-3 ؉/؉ but not the GSK-3 ؊/؊ cells, Epm2a small interfering RNA significantly enhanced cell growth. Consistent with an increased level of cyclin D1, the phosphorylation of retinoblastoma protein (Rb) and the levels of Rb-E2F-regulated genes cyclin A, cyclin E, MCM3, and PCNA are also elevated. Inhibitors of GSK-3 selectively increased the cell growth of Epm2a ؉/؉ but not of Epm2a ؊/؊ cells. Taken together, our data demonstrate that laforin is a selective phosphatase for GSK-3 and regulates cell cycle progression by GSK-3-dependent mechanisms. These data provide a cellular basis for the tumor suppression activity of laforin.Cell cycle progression is facilitated by cyclin-dependent kinases (CDKs) that are activated by cyclins, including cyclin D1, and inhibited by CDK inhibitors (27,29). Cyclin D1 is a critical regulator involved in cell cycle progression through the G 1 phase and into the S phase (18, 33). The active cyclin D1/ CDK4 complex initiates the phosphorylation of retinoblastoma protein (Rb) (9), which disrupts Rb-mediated transcriptional repression of E2F and facilitates cell cycle progression (27,29). However, the activity of cyclin D1/CDK4 is specifically inhibited by four INK4 proteins (p 16INK4a , p 15INK4b , p 18INK4c , and p 19INK4d ) (13,14,34) and by glycogen synthase kinase 3 (GSK-3) (3, 7). GSK-3 phosphorylates cyclin D1 at Thr286 (3, 7) and thereby triggers its nuclear export, ubiquitination, and proteasomal degradation (7).GSK-3 is a multifunctional serine/threonine protein kinase (2, 6, 12) and a component of multiple signal transduction pathways, including the insulin, Wnt, and Ras signaling pathways. In the Wnt signaling pathway, GSK-3 phosphorylates -catenin for its degradation and is an essential negative regulator of the Wnt/-catenin pathway (1, 4). Wnt inhibits the enzymatic activity of GSK-3, thereby stabilizing -catenin and enabling its association with T-cell factor (TCF)/lymphoid enhancer-binding factor (LEF) protein complexes to activate the transcription of target genes, including those like c-myc and cyclin D1 (25). However, how GSK-3 activity is regulated has been poorly understood.Epm2a encodes a 331-amino-acid dual-specificity phosphatase called laforin (5,10,(20)(21)(22). Loss-of-function mutations in Epm2a result in Lafora disease, an autosomal recessive disorder i...