Nuclear-targeted beta-galactosidase (beta-gal) is increasingly used as a genetic cell marker in vitro and in vivo. Nuclear sequestration concentrates beta-gal and permits sensitive identification of expressing cells and/or tissues without obscuring the cytoplasmic detail necessary for analysis of cell phenotype. Here, we report the construction and testing of a nuclear-targeted version of the beta geo fusion protein that combines nuclear localization with the ability to select expressing cells with the drug G418. This new marker gene functions efficiently in retroviral vectors and will be useful in identification and isolation of cells transfected in vitro and cells expressing transgenic or gene-targeted constructs in vivo.