The Dishevelled (DVL) protein family forms supramolecular protein and lipid complexes at the cytoplasmic interface of the plasma membrane to regulate tissue patterning, proliferation, cell polarity, and DVL-dependent signaling, such as Wnt/β-catenin. While DVL binding to cholesterol is required for its membrane association, the specific structural requirements and cellular impacts of DVL-sterol association are unclear. We report that sterols found within both natural and pathological conditions cause aberrant DVL activity. and molecular analyses suggested orientation of the β- and α-sterol face within the DVL-PDZ domain regulates DVL-sterol binding. Aberrant sterols impaired DVL2 plasma membrane association, inducing DVL2 nuclear localization via FoxK2. Altered sterol homeostasis also selectively impaired DVL2 protein-protein interactions with impacts on multiple signaling pathways. This work identifies sterol specificity as a regulator of DVL signaling, demonstrates intracellular sterols impact DVL localization and activity, and supports a role for aberrant DVL activity within disorders of sterol metabolism.