Natural killer (NK) cells are a major weapon of the immune system against tumor growth. The actomyosin network generates forces through the activity of actin filaments and myosin motors. This machinery is responsible for the conversion of mechanical forces into biochemical signals in a process termed mechanotransduction. However, the mechanism by which mechanotransduction controls the immune response, and specifically lymphocyte activity, is poorly understood. Here, we demonstrate that actomyosin retrograde flow (ARF) controls anti-tumor immunity of NK cells through a novel interaction between beta-actin with the SH2-domain containing protein tyrosine phosphatase-1 (SHP-1), converting its conformation state, thereby regulating NK cell cytotoxicity. Actin dynamics govern SHP-1 conformational structure dictating its catalytic activity. Indeed, blocking actin dynamics results in reduced SHP-1 activity, by confining SHP-1 to its inactivated “closed” conformation. This reduced enzymatic activity of SHP-1 leads to increased phosphorylation of SHP-1 substrates, an elevation of intracellular calcium flux and an increase in NK cell cytotoxicity. Our data suggest that SHP-1 plays a major role as a sensor of ARF-generated forces in the process of mechanotransduction, and reveal a novel mechanism by which regulation of SHP-1 by ARF dictates NK cell killing decisions of cancerous cells. Our data identify ARF as a master regulator of the NK cell immune response, and influencing its activity presents a potential novel approach for cancer immunotherapy.