Cancer cells are capable of serum-and anchorageindependent growth, and focus formation on monolayers of normal cells. Previously, we showed that RACK1 inhibits c-Src kinase activity and NIH3T3 cell growth. Here, we show that RACK1 partially inhibits v-Src kinase activity, and the serumand anchorage-independent growth of v-Src transformed cells, but has no effect on focus formation. RACK1-overexpressing vSrc cells show disassembly of podosomes, which are actin-rich structures that are distinctive to fully transformed cells.Together, our results demonstrate that RACK1 overexpression in v-Src cells partially reverses the transformed phenotype of the cells. Our results identify an endogenous inhibitor of the oncogenic Src tyrosine kinase and of cell transformation.