The processing of amyloid precursor protein (APP) is a key event in the pathogenesis of Alzheimer's disease. As certain cleavage pathways tend to occur in particular subcellular compartments, the processing of APP is greatly influenced by factors that regulate its trafficking. Here we report that SCG10 directly interacts with the KFFEQ motif of the APP intracellular domain and promotes the non-amyloidogenic processing of the APP. Knockdown of SCG10 led to decreases in alpha cleavage products, sAPPalpha and CTFalpha, while increases of both Abeta1-40 and Abeta1-42. Elevation of SCG10 induced APP accumulation in post-Golgi vesicles and on the cell surface by facilitating its secretory pathway. In addition, the APP processing was dependent on the palmitoylation-mediated membrane-anchoring of SCG10. Furthermore, elevation of SCG10 reduced Abeta accumulation and amyloid plaque formation in the hippocampus of APPswe/PS1dE9 mice. Taken together, these results show that SCG10 has a potential role in preventing and treating Alzheimer's disease.