A total of 38 strains were initially isolated from Jiaoke, a homemade traditional fermented cream, which was sourced from Inner Mongolia, China, and 6 strains were selected after screening, which was based on their cholesterol removal abilities. The Lactobacillus plantarum with the highest level of cholesterol removal from the media was identified using phenotypical characteristics and 16S rRNA sequences, and was named L. plantarum KLDS 1.0344. The mechanisms for cholesterol removal involved co-precipitation, assimilation, and degradation of cholesterol by L. plantarum KLDS 1.0344. At a level of 8.56 log CFU/ml, L. plantarum KLDS 1.0344 survived in pH 2.5 MRS broth for 2 h and exhibited excellent tolerance to 0.3% (w/v) bile. This strain has the most potential in applications as a dietary supplement for lowering human serum cholesterol. A series of tests on animal model and/or clinical tests will be conducted before it can be used in a pharmaceutical application.