Abstract: The present invention features nucleic acids and polypeptides encoding LXR-Ligand Induced I (LXRLI1). Treatment of human cells with acetylpodocarpic dimer, a LXR-agonist compound, results in an increase in LXRLI1 gene expression. The cDNA sequence of LXRLI1 is provided by SEQ ID NO 1. The amino acid sequence for LXRLI1 is provided by SEQ ID NO 2. The present invention also defines an LXR-ligand induced gene and provides methods for using gene expression profiles of this set of LXR regulated genes to measure LXR activity in a subject, to diagnose a disease or disorder involving LXR activity, to screen for compounds that change the activity of LXR and to classify LXR ligands.