p27 Kip1 is a critical regulator of the eukaryotic cell cycle. It acts as a check point proteinand regulates cell cycle progression at the G1 and G1/S phase as well as predominantlyblocks cell cycle progression in the absence of growth factors. Intracellular turnover of p27is tightly regulated at the level of translation as well as by posttranslational modification.The mechanism by which p27 protein is rapidly degraded during the G1 and G1/S phasetransition is well characterized. However, the process by which p27 remains extremelystable in the absence of growth factors remains unknown. Here, we report that GSK-3dependent phosphorylation of p27 protein is essential for its enhanced stability. p27 proteinharbours 2 functional GSK-3 phosphorylation sites at the C- terminus, which was found tobe effectively phosphorylated by the cognate enzyme both in vitro and in vivo. Combinedwith earlier observation which shows that it phosphorylates and triggers cyclin Ddegradation; GSK-3 now appears to be a central mediator of the cell-cycle regulatorynetwork, where it acts as a two-way switch, phosphorylating and targeting pro-proliferativefactors for degradation on one hand and simultaneously phosphorylating and stabilizing ananti-proliferative factor on the other hand. This dual mode of activity may doubly ensurethat cell cycle progression is aptly prohibited under conditions of limited growth factoravailability.