The TAZ pathway functions primarily through the regulation of cell proliferation and apoptosis. When the Hippo pathway is activated, it phosphorylates and inactivates TAZ, preventing it from entering the nucleus. This inhibition stops TAZ from interacting with transcription factors like TEAD, thereby down-regulating genes involved in cell growth and survival. Conversely, when the Hippo pathway is inactive, TAZ translocates to the nucleus and promotes gene expression that supports cell proliferation and anti-apoptotic functions.