CREB-H is an ATF6-related, transmembrane transcription factor that, in response to endoplasmic reticulum (ER)-associated stress, is cleaved by Golgi proteases and transported to the nucleus to effect appropriate adaptive responses. We characterize the ER processing and turnover of CREB-H with results which have important implications for ER stress regulation and signalling. We show that CREB-H is glycosylated and demonstrate that both the ER and nuclear forms of CREB-H have short half-lives. We also show that CREB-H is subject to cycles of retrotranslocation, deglycosylation and degradation through the ER-associated degradation (ERAD) pathway. Proteasome inhibition resulted in accumulation of a cytosolic intermediate but additionally, in contrast to inhibition of glycosylation, promoted specific cleavage of CREB-H and nuclear transport of the N-terminal-truncated product. Our data indicate that under normal conditions CREB-H is transported back from the ER to the cytosol, where it is subject to ERAD, but under conditions that repress proteasome function or promote load CREB-H is diverted from this pathway instead undergoing cleavage and nuclear transport. Finally, we identify a cytoplasmic determinant involved in CREB-H ER retention, deletion of which results in constitutive Golgi transport and corresponding cleavage. We present a model where cellular stresses may be sensed at different levels by different members of the basic and leucine zipper domain transmembrane proteins.