beta-Arrestin 2 (betaarr2) is a multifunctional protein that regulates numerous aspects of G-protein-coupled receptor function. However, its possible involvement in developmental processes is poorly understood. In this work, we examined the potential role of betaarr2 during Xenopus early development. Gain- and loss-of-function studies showed that Xenopus betaarr2 (xbetaarr2) is required for proper convergent extension (CE) movements, and normal cell polarization and intercalation without affecting cell fate. Moreover, for CE movements, betaarr2 acts as an essential regulator of dishevelled-mediated PCP (planar cell polarity) signaling, but not G-protein-mediated Ca(2+) signaling. Notably, xbetaarr2 is localized with the same distribution as the dishevelled protein, which is reasonable, as xbetaarr2 is required for dishevelled activation of RhoA. Furthermore, xbetaarr2 interacts with the N-terminal quarter of Daam1 and RhoA proteins, but not Rac1, and regulates RhoA activation through Daam1 activation for CE movements. We provide evidence that the endocytic activity of xbetaarr2 is essential for control of CE movements. Taken together, our results suggest that betaarr2 has a pivotal role in the regulation of Xenopus CE movements.