The dual regulator Sufu integrates Hedgehog and Wnt signals in the early Xenopus embryo

► Hh/Gli signals are critical for neural induction in Xenopus. ► Sufu regulates neural induction, anteroposterior patterning, and eye development. ► Sufu is sufficient and required to inhibit Wnt/β-catenin signaling in vivo. ► Gli1 suppresses Wnt and β-catenin stimulates Hh signaling in the embryo. ► Sufu is critical for the crosstalk between Hh and Wnt signals.