ZBP1 (Zipcode Binding Protein 1) is an RNA binding protein involved in many post-transcriptional processes, such as RNA localization, RNA stability and translational control. ZBP1 is abundantly expressed in embryonic development, but its expression is silenced in most adult tissues. Reactivation of the gene has been reported in various human tumors. In this study, we identified a detailed molecular mechanism of ZBP1 transactivation in breast cancer cells. We show that beta-catenin, a protein that functions in both cell adhesion and transcription, specifically binds to the ZBP1 promoter via a conserved beta-catenin/TCF4 response element and activates its gene expression. ZBP1 activation is also closely correlated with nuclear translocation of beta-catenin in human breast tumors. We further demonstrate a feedback regulation by finding that ZBP1 physically associates with beta-catenin mRNA in vivo and increased its stability. These experiments suggest that in breast cancer cells, expression of ZBP1 and beta-catenin are coordinately regulated. beta-catenin mediates the transcription of the ZBP1 gene, while ZBP1 promotes the stability of beta-catenin mRNA.