The cholesterol-lowering properties of Auricularia auricula are commonly attributed to the presence of polysaccharides based on previous research. The present study was designed to investigate the effects of ethanol extract of A. auricula (AAE) on hypercholesterolemia in ICR mice. AAE contained more than 16% (g/g) polyphenolic compounds, excluding other interfering factors such as polysaccharides, water-soluble fibre and protein. Thirtysix mice were randomly assigned to three groups (n=12). The experimental group was fed cholesterol-enriched diet (CED) with oral administration of AAE (150 mg/kg/d b.w.) for 8-week, normal control group and CED control group received either a regular diet (RD) or CED along with oral administration of equal volume distilled water. Serum lipid profiles and antioxidant status were measured in addition to fecal neutral cholesterol and bile acids. AAE showed a remarkable hypocholesterolemic effect, improving antioxidant status, decreasing the level of total cholesterol and atherosclerosis index, increasing the level of high-density lipoprotein cholesterol and fecal excretion of bile acids. No apparent effects on serum triglycerides, low-density lipoprotein cholesterol, fecal excretion of neutral cholesterol and feeding efficiency were observed among all groups. These results indicated that A. auricula functional components, which prevented hypercholesterolemia contained polyphenolic compounds, in addition to polysaccharides.