Increasing evidence suggests that embryonic development and tumorigenesis share some of the same molecular mechanisms. In particular, aberrant reactivation of latent developmental signaling pathways and transcription factors in tumor cells has been associated with and shown to play causal roles in advanced-stage, invasive cancers (5, 6, 80). Limb-bud and heart (LBH) is a highly conserved, novel tissue-specific transcription cofactor in vertebrates with important roles in embryonic development (7, 8, 19). We have previously identified Lbh as a novel mouse gene with unique spatiotemporal expression during early embryogenesis that reflects pattern formation in the developing limb buds and heart (8). Lbh encodes a small acidic protein (molecular mass, 12.3 kDa) that contains a conserved putative nuclear localization signal and a glutamate-rich putative transcriptional activation domain but lacks a DNA binding domain (DBD) (8). In mammalian reporter assays, LBH has both transcriptional activator and corepressor functions (7, 8). Recent biophysical analysis has revealed a high degree of structural disorder in LBH, suggesting that conformational plasticity may play a significant role in modulating LBH-dependent transcriptional processes (2). Aberrant gain of LBH function is associated with partial trisomy 2p syndrome (7), a rare human autosomal disorder that is characterized by multiple congenital anomalies, including cardiovascular, skeletal, and postaxial limb defects (46). Partial trisomy 2p syndrome patients harbor a triplication of chromosomal region 2p23, where LBH maps, indicating that increased LBH gene dosage is pathological in humans (7). Transgenic misexpression of Lbh during embryonic heart development in mice phenocopies congenital heart disease observed in these patients (7) and indicates that Lbh functions to attenuate cardiac chamber differentiation through corepression of key cardiac transcription factors NKX2.5 and TBX5 (7). Interestingly, gain of function of LBH during mouse heart development also causes various growth defects, such as ventricular hyperplasia and increased cardiac valve formation, as well as the abnormally sustained self-renewal of cardiomyocytes after birth, suggesting that LBH has promitogenic activity (7). Consistent with these findings, retroviral overexpression of Lbh in chicken embryonic limbs leads to increased cell proliferation of immature chondrocytes and markedly delays bone differentiation (19). However, the regulatory pathways acting upstream of LBH and its role in adult development have remained obscure. Wnt signaling plays a fundamental role in embryonic development by regulating pattern formation, cell proliferation, differentiation, and migration (44). Wnt ligands are secreted lipid-modified glycoproteins that act as morphogens and elicit different cell behaviors depending on whether receptor interaction activates a canonical β-catenin-dependent transduction pathway or other β-catenin-independent noncanonical pathways (39, 73). In adults, canonical Wnt signaling promotes the self-renewal and maintenance of stem cells required for normal tissue homeostasis (52), a function that becomes oncogenic when this pathway is deregulated (18). Activation of canonical Wnt signaling leads to the stabilization of cytoplasmic β-catenin and its subsequent translocation into the nucleus, where it forms a heteromeric complex with DNA-binding proteins of the T-cell factor (TCF)/lymphoid enhancer-binding factor (LEF) family to activate target gene transcription (18). In the absence of Wnt, TCF/LEF factors are bound to target gene promoters but act as transcriptional repressors by forming a complex with Groucho/Grg/TLE corepressors (18). The amplitude of canonical Wnt signaling is autoregulated via multiple positive and negative feedback mechanisms that include TCF/LEF factors themselves and the secreted antagonist Dickkopf 1 (DKK1), respectively (13, 18, 26, 51). In addition, Wnt ligands can activate multiple noncanonical signaling pathways, including the planar cell polarity (PCP) and Wnt/Ca2+ pathways and, in the case of Wnt7a in limb development, a pathway involving the homeodomain transcription factor Lmx1b (37, 62). Genetic studies of mice first indicated that canonical Wnt signaling is oncogenic and implicated in breast cancer. Aberrant activation of Wnt1 through proviral integration of the mouse mammary tumor virus (MMTV) causes aggressive mammary tumors in mice (53, 71). Similarly, transgenic overexpression of stabilized β-catenin in mouse mammary glands results in formation of invasive mammary adenocarcinomas (33, 69). Abnormal activation of the canonical Wnt pathway is also associated with human breast cancer (41) and is most common in a highly aggressive subtype of breast cancers known as basal carcinomas (22, 28, 38, 64). This tumor subtype accounts for 15 to 20% of breast cancers and is characterized by early onset and a highly invasive, poorly differentiated (keratin 5/6-positive) tumor phenotype. Basal-like breast cancers have a poor clinical outcome and represent a challenge for therapeutic intervention due to their lack of expression of the therapeutic targets estrogen receptor (ER), progesterone receptor (PR), and the ERBB2 oncogene (57, 65, 66), thus emphasizing the need for identification of new tumor-specific markers. The spatiotemporal expression pattern of Lbh during mouse embryogenesis (8) led us to hypothesize that Lbh may be controlled by morphogenic signaling pathways that orchestrate cell specification and pattern formation. Using a combination of molecular, mammalian tissue culture, mouse genetics, and in silico analyses, we set out to identify the molecular pathways operating upstream of LBH. In doing so, we discovered that LBH expression in epithelial development is tightly controlled by an antagonistic relationship between canonical Wnt/β-catenin and noncanonical Wnt7a signaling. Whereas LBH transcription is induced by Wnt/β-catenin signaling via four conserved TCF/LEF binding sites in the LBH gene locus, this induction is efficiently blocked by Wnt7a. Given the parallels between Wnt signaling in development and cancer, we hypothesized that LBH, as a canonical Wnt target gene, might be deregulated in breast cancer. Indeed, we found that LBH is aberrantly overexpressed in mammary tumors of MMTV-Wnt1 transgenic mice as well as in highly aggressive basal subtype human breast cancers. Overexpression of Lbh in HC11 mammary epithelial cells (MECs) further demonstrates that LBH suppresses terminal cell differentiation, an effect that could contribute to Wnt-induced tumorigenesis. Collectively, our data suggest that LBH is a direct Wnt target gene that is reactivated in a particularly lethal form of human breast cancer.