Transcription factor movement is well established in plants. Since the initial report of KNOTTED movement, more than a dozen transcription factors have been shown to move in plants. However, the developmental significance of movement is not known. Using the SHORT-ROOT (SHR) transcription factor as a tool for studying cell-to-cell trafficking, we show that movement of SHR from its site of synthesis is necessary for normal development of the Arabidopsis root. We identify multiple regions of SHR that are required for intra- and intercellular movement of SHR, including a region that is necessary for movement but not activity. We made the surprising discovery that the capacity for intercellular movement may be conserved among other GRAS family proteins. Finally, we provide evidence that movement requires both cytoplasmic and nuclear localization, strongly suggesting a mechanistic link between nuclear transport and cell-to-cell movement.