The Borg/Cdc42EP family comprises septin binding proteins, which are known to promote septin-dependent stress fibers and acto-myosin contractility. We show here that epithelial Borg5/Cdc42ep1 instead limits contractility, cell-cell adhesion tension and motility as is required for the acquisition of columnar, isotropic cell morphology in mature MDCK monolayers. Borg5 depletion inhibited the development of the lateral F-actin cortex, stimulated microtubule-dependent leading-edge lamellae as well as radial stress fibers and, independently of the basal F-actin phenotype, caused anisotropy of apical surfaces within compacted monolayers. We determined that Borg5 limits septin-colocalization with microtubules, and that like Septin 2, Borg5 interacts with the rod-domain of Myosin- IIA. The interaction of Myosin-IIA with Borg5 was reduced in the presence of septins. Because septins also mediate myosin activation, we propose that Borg5 limits contractility in MDCK cells in part by counteracting septin-associated myosin activity.