Acts as a transcriptional activator. Binds to the DNA consensus sequence 5'-GACCACCCA-3'. Regulates the transcription of specific genes during normal development. Plays a role in craniofacial development and digital development, as well as development of the central nervous system and gastrointestinal tract. Mediates SHH signaling. Plays a role in cell proliferation and differentiation via its role in SHH signaling. Interacts with KIF7 (PubMed:19592253). Interacts with STK36. Interacts with ZIC1; the interaction enhances transcription activation. Interacts with SUFU; this inhibits transcriptional activation by GLI1 (By similarity). Tethered in the cytoplasm by binding to SUFU. Activation and translocation to the nucleus is promoted by interaction with STK36. Phosphorylation by ULK3 may promote nuclear localization. Translocation to the nucleus is promoted by interaction with ZIC1. Is detected on days 10 through 18 of embryonic development. During gestation it is detected in meckels precartilage mesenchyme, the basis occipitus, rib mesenchymal condensations, primordial vertebral bodies, digital mesenchymal condensations in forefoot and hindfoot plates, the ependymal layer of the spinal cord, and the mesoderm of the gastrointestinal tract. Expression persists throughout gestation in developing bone and cartilage of the extremities, the ribs, and the vertebral bodies as well as the gastrointestinal tract mesoderm. Phosphorylated in vitro by ULK3. Acetylation at Lys-520 down-regulates transcriptional activity. Deacetylated by HDAC1. Ubiquitinated by the CRL2(FEM1B) complex, suppressing GLI1 transcriptional activator activity. Belongs to the GLI C2H2-type zinc-finger protein family.