The initial clue between forkhead proteins ( 1 ) and metabolism originated from the nematode Caenorhabditis elegans when it was found that inactivation of the insulin receptor homolog daf-2 shifted the metabolism of the worm to fat storage, resulting in a prolonged life span ( 2 ). The O family of the forkhead transcription factors FoxO1, FoxO3a, and FoxO4 have been involved in the regulation of multiple biological pathways ( 3 ), such as cell survival ( 4 ), cell cycle ( 5 ), insulin sensitivity ( 6 ), and adipocyte differentiation ( 7 ). FoxO transcription factors are expressed at different levels in multiple tissues, with FoxO4 showing predominant expression in skeletal muscle, heart, and adipose tissue ( 1,8 ). Mouse knockout studies of FoxO1, FoxO3a, and FoxO4 revealed that homozygosity for FoxO1 led to embryonic lethality, whereas FoxO3a and FoxO4 were viable ( 9 ). These studies demonstrate that FoxO3a and FoxO4 cannot compensate for the loss of FoxO1; however, FoxO1 or other factors could compensate for certain aspects of FoxO3a and FoxO4 loss of function. FoxO3a homozygous null females showed an age-dependent infertility associated with abnormal follicular development, and transgenic mice overexpressing a constitutively active form of FoxO3a in oocytes had delayed oocyte Abstract The Forkhead transcription factors FoxO1, FoxO3a, and FoxO4 play a prominent role in regulating cell survival and cell cycle. Whereas FOXO1 was shown to mediate insulin sensitivity and adipocyte differentiation, the role of the transcription factor FoxO4 in metabolism remains ill defi ned. To uncover the effects of FoxO4, we generated a cellular model of stable FoxO4 overexpression and subjected it to microarray-based gene expression profi ling. While pathway analysis revealed a disruption of cholesterol biosynthesis gene expression, biochemical studies revealed an inhibition of cholesterol biosynthesis, which was coupled with decreased mRNA levels of lanosterol 14 ␣ demethylase (CYP51). FoxO4-mediated repression of CYP51 led to the accumulation of 24,25 dihydrolanosterol (DHL), which independently and unlike lanosterol inhibited cholesterol biosynthesis. Furthermore, FoxO4-overexpressing cells accumulated lipid droplets and triacylglycerols and had an increase in basal glucose uptake. Recapitulation of these effects was obtained following treatment with CYP51 inhibitors, which also induce DHL buildup. Moreover, DHL but not lanosterol strongly stimulated liver X receptor ␣ (LXR ␣ ) activity, suggesting that DHL and LXR ␣ mediate the downstream effects initiated by FoxO4. Together, these studies suggest that FoxO4 acts on CYP51 to regulate the late steps of cholesterol