A B S T R A C T This paper describes a pathway of cholic acid synthesis, in man and in the rat, which involves 25-hydroxylated intermediates and is catalyzed by microsomal and soluble enzymes. The subcellular localization, stereospecificity, and other properties of the enzymes involved were studied with liver fractions of normolipidemic subjects, cerebrotendinous xanthomatosis patients, and rats.5P-Cholestane-3a,7a,12a,25-tetrol was converted to 5p-cholestane-3a,7a,12a,24,,25-pentoI by the microsomal fraction in the presence of NADPH and 02. 5#-Cholestane-3a,7a, 12a,24a,25-pentol, 5,6-cholestane-3a,7a,12a,-23t,25-pentol, and 5P-cholestane-3a,7a, 12a-,25,26-pentol were also formed. In the presence of NAD, 5#-cholestane-3a,7a,12a,24fi,25-pentol, but not the other 59-cholestanepentols formed, was converted to cholic acid by soluble enzymes in good yield.These experiments demonstrate the existence of a pathway for side-chain degradation in cholic acid synthesis which does not involve hydroxylation at C-26 or the participation of mitochondria.