Pancreatic ductal adenocarcinoma (PDAC) is the fourth leading cause of cancer death in the USA, accounting for about 40,000 deaths annually. Unfortunately, little progress has been seen in the outcomes of patients with PDAC as it is unable to be diagnosed at an early stage and tumor develops high desmoplasia and chemo-resistance to chemotherapeutic drugs, such as gemcitabine (gem). Potent anticancer, chemopreventive, chemo-sensitization properties have been reported for curcumin (cur). However, the major clinical challenge is its clinical translation that has been significantly hampered due to its low solubility, high rate of metabolism, poor bioavailability and pharmacokinetics. Therefore, we have developed a magnetic nanoparticle formulation of curcumin (Mag-cur) that targets the tumor as well as the surrounding microenvironment resulting in its efficient and targeted delivery. Investigations for the treatment effects of M agcur, gem and their combination on Hh signaling pathway in PDAC, were performed using Western blotting and qPCR analysis. We also studied the antitumor effects using PanCa xenograft mice . Imunohistochemistry/immunofluorescence analysis was performed in the excised tumor tissue sections from mice for the important proteins in sonic hedgehog (SHH) pathway, such as Gli-1, SMO, CXCR-4, patch1/2, sufu, markers for stellate cells (cygb/STAP) and myofibroblast (α-SMA) and macrophages (F4/80). The microRNAs were investigated using insitu hybridization. Our results demonstrate that Mag-cur alone or in combination with gem inhibits pluripotency maintaining factors (Nanog, Sox- 2, c-Myc and Oct-4) in human pancreatic cancer stem cells and the formation of stumorspheres. We found that Mag-cur inhibits PDAC proliferation, migration, invasion and tumor growth in xenograft mouse model by suppression of the sonic hedgehog (SHH) signaling pathway and CXCR4/CXCL12 signaling axis that inhibit bidirectional tumor-stromal cells interaction. Mag-cur treatment alone or in combination with CXCR4 antagonist (amd3100) inhibits CXCL12 induced up regulation of CXCR4, SHH and NFĸB-65 in cells. Further, qRT-PCR results showed that Mag-cur treatment increases gem sensitivity by up regulating the human nucleoside transporter genes (hENT, hCNT) and blocking ribonucletide reductase subunits (RRM1/RRM2) which further supports the use of Mag-cur for suppression of PanCa growth. Immunostaining of tumor sections from treated pancreatic xenograft mice revealed that MNP-cur treatment efficiently inhibits key proteins of SHH signaling such as SHH and Gli-1. Mag-cur also disrupts the stroma of fibrotic pancreatic tumors by inhibiting the proliferating stellate and myeloid cells. This was indicated by the decreased staining of αSMA, macrophages and cygb/STAP in tumor tissues. Additionally, the tumor tissues from Mag-cur treated mice showed extensive downregulation of oncogenic miR-21 expression which has been associated with cancer progression and drug resistance. Therefore, these results suggest that Mag-cur has a great potential for future clinical use in the treatment of PDAC.