Has a dual function as a transcriptional activator and a repressor of the sonic hedgehog (Shh) pathway, and plays a role in limb development. The full-length GLI3 form (GLI3FL) acts as an activator (GLI3A) while GLI3R, its C-terminally truncated form, acts as a repressor. Detected in limb buds at embryonic stages 22-23 (at protein level). Phosphorylation is essential for its proteolytic processing. The repressor form (GLI3R), a C-terminally truncated form is generated from the full-length GLI3 protein (GLI3FL) through proteolytic processing. Belongs to the GLI C2H2-type zinc-finger protein family.