Proteolytic processing of the transmembrane amyloid precursor protein (APP) to aggregation‐prone amyloid‐beta (Abeta) peptide underlies the development of Alzheimer's disease. Processing is carried out by alpha‐, beta‐, and gamma‐secretases after export of newly‐synthesized APP from the endoplasmic reticulum. We find that the heterotetrameric adaptor protein 4 (AP‐4) complex recognizes an unusual tyrosine‐based sorting signal in the cytosolic tail of APP, leading to APP transport from the trans‐Golgi network to endosomes. This diversion from the secretory pathway decreases gamma‐secretase‐catalyzed production of Abeta. These findings identify AP‐4 as a novel regulator of APP trafficking and processing, and as a protective factor against Alzheimer's disease.