The nuclear receptor CAR (NR1I3) regulates hepatic drug and energy metabolism as well as cell fate. Its activation can be a critical factor in drug-induced toxicity and the development of diseases, including diabetes and tumors. CAR inactivates its constitutive activity by phosphorylation at threonine 38. Utilizing receptor for protein kinase 1 (RACK1) as the regulatory subunit, protein phosphatase 2A (PP2A) dephosphorylates threonine 38 to activate CAR. Here we demonstrate that CAR undergoes homodimer-monomer conversion to regulate this dephosphorylation. By coexpression of two differently tagged CAR proteins in Huh-7 cells, mouse primary hepatocytes, and mouse livers, coimmunoprecipitation and two-dimensional gel electrophoresis revealed that CAR can form a homodimer in a configuration in which the PP2A/RACK1 binding site is buried within its dimer interface. Epidermal growth factor (EGF) was found to stimulate CAR homodimerization, thus constraining CAR in its inactive form. The agonistic ligand CITCO binds directly to the CAR homodimer and dissociates phosphorylated CAR into its monomers, exposing the PP2A/RACK1 binding site for dephosphorylation. Phenobarbital, which is not a CAR ligand, binds the EGF receptor, reversing the EGF signal to monomerize CAR for its indirect activation. Thus, the homodimer-monomer conversion is the underlying molecular mechanism that regulates CAR activation, by placing phosphorylated threonine 38 as the common target for both direct and indirect activation of CAR.KEYWORDS CITCO, cell signaling, constitutive androstane receptor, homodimer, nuclear receptors, phenobarbital, protein phosphorylation A group of nuclear receptor superfamily members exhibit high constitutive activity. For these nuclear receptors, the molecular mechanism by which they control their constitutive activities to acquire responsiveness to activation is not understood at this time. Constitutively active/androstane receptor (CAR) is a member of this group of nuclear receptors. CAR regulates hepatic drug metabolism, disposition, and energy metabolism as well as cell signaling, through which it plays central roles in the development of drug-induced toxicity and diseases, such as type 2 diabetes and hepatocellular carcinoma (1-4). Understandably, determining the CAR activation mechanism is necessary to elucidate CAR-mediated disease processes and to predict and prevent them.Constitutively active CAR is inactivated by phosphorylation at Thr 38 within its DNA binding domain (DBD) and is retained in the cytoplasm of hepatocytes (5). Protein phosphatase 2Ac (PP2Ac) utilizes receptor for activated C kinase 1 (RACK1) as a regulatory subunit to dephosphorylate Thr 38 (6). Then, nonphosphorylated CAR is activated and translocates into the nucleus. Epidermal growth factor (EGF) represses CAR activation by stimulating extracellular signal-regulated kinase 1/2 (ERK1/2) to