Apolipoprotein J (APOJ) is a multifunctional protein with genetic evidence suggesting an association betweenAPOJpolymorphisms and Alzheimer’s disease as well as exfoliation glaucoma. Herein we conducted ocular characterizations ofApoj−/−mice and found that their retinal cholesterol levels were decreased and that this genotype had several risk factors for glaucoma: increased intraocular pressure and cup-to-disk ratio and impaired retinal ganglion cell (RGC) function. The latter was not due to RGC degeneration or activation of retinal Muller cells and microglia/macrophages. There was also a decrease in retinal levels of 24-hydroxycholesterol, a suggested neuroprotectant under glaucomatous conditions and a positive allosteric modulator of N-methyl-d-aspartate receptors mediating the light-evoked response of the RGC. Therefore,Apoj−/−mice were treated with low-dose efavirenz, an allosteric activator of CYP46A1 which converts cholesterol into 24-hydroxycholesterol. Efavirenz treatment increased retinal cholesterol and 24-hydroxycholesterol levels, normalized intraocular pressure and cup-to-disk ratio, and rescued in part RGC function. Retinal expression ofAbcg1(a cholesterol efflux transporter),Apoa1(a constituent of lipoprotein particles), andScarb1(a lipoprotein particle receptor) was increased in EVF-treatedApoj−/−mice, indicating increased retinal cholesterol transport on lipoprotein particles. Ocular characterizations ofCyp46a1−/−mice supported the beneficial efavirenz treatment effects via CYP46A1 activation. The data obtained demonstrate an important APOJ role in retinal cholesterol homeostasis and link this apolipoprotein to the glaucoma risk factors and retinal 24-hydroxycholesterol production by CYP46A1. As the CYP46A1 activator efavirenz is an FDA-approved anti-HIV drug, our studies suggest a new therapeutic approach for treatment of glaucomatous conditions.