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The Hedgehog (Hh) family of secreted proteins governs the development of numerous tissues by regulating the activity of the Gli family of transcription factors. Emerging evidence shows that Hh also functions as a chemoattractant in several processes through a noncanonical pathway independent of Gli-mediated transcription. How Hh-responsive cells execute transcriptional versus chemotactic responses is a key issue. Data now suggest that altered subcellular localization of the transducer Smoothened, which functions in both the canonical and noncanonical pathways, is responsible for eliciting distinct Hh outputs.