The aim of this study was to assess the efficacy of a novel water‐soluble phytostanol anolog, disodium ascorbyl phytostanyl phosphate (DAPP), on plasma lipid levels and red blood cell fragility in hamsters fed atherogenic diets. For 4 wk, 50 male Golden Syrian hamsters were fed a semipurified diet without added cholesterol (noncholesterol, group 1), or a semipurified diet with 0.25% cholesterol (cholesterol‐control, group 2). Groups 3–5 were fed the cholesterol‐control diet with an addition of 1% phytostanols (diet 3), 0.71% DAPP (DAPP 0.7%, diet 4), or 1.43% DAPP (DAPP 1.4%, diet 5). Diets 4 and 5 provided 0.5 and 1% phytostanols, respectively. Supplementation of 0.71 and 1.43% DAPP decreased plasma total cholesterol concentrations by 34 (P<0.001) and 46% (P<0.001), respectively, in comparison with the cholesterol‐control group, whereas free stanols reduced (P=0.007) plasma cholesterol concentrations by 14%. Similarly, non‐HDL‐cholesterol concentrations were reduced by 39 (P<0.001) and 54% (P<0.001) in hamsters supplemented with DAPP 0.7% and DAPP 1.4%, respectively, relative to the cholesterol‐control group. The hypocholesterolemic effect of DAPP 1.4% was threefold stronger than that of free stanols. In hamsters supplemented with DAPP 1.4%, plasma TG concentrations were 45% lower (P=0.018) than in cholesterol‐control‐fed hamsters, whereas no such beneficial effect was observed in the free stanol group. Erythrocyte fragility was unaffected by DAPP or free phytostanols. Results of the current study demonstrate that DAPP lowers cholesterol more efficiently than free stanols, without an adverse effect on erythrocyte fragility in hamsters.