Wnt genes encode a large family of secreted, cysteine-rich proteins that pl
ay key roles as intercellular signaling molecules in development. Genetic s
tudies in Drosophila and Caenorhabditis elegans, ectopic gene expression in
Xenopus, and gene knockouts in the mouse have demonstrated the involvement
of Wnts in processes as diverse as segmentation, CNS patterning, and contr
ol of asymmetric cell divisions. The transduction of Wnt signals between ce
lls proceeds in a complex series of events including post-translational mod
ification and secretion of Wnts, binding to transmembrane receptors, activa
tion of cytoplasmic effecters, and, finally, transcriptional regulation of
target genes. Over the past two years our understanding of Wnt signaling ha
s been substantially improved by the identification of Frizzled proteins as
cell surface receptors for Wnts and by the finding that beta-catenin, a co
mponent downstream of the receptor, can translocate to the nucleus and func
tion as a transcriptional activator. Here we review recent data that have s
tarted to unravel the mechanisms of Wnt signaling.