When labeled cholesterol was incubated with the 20,000 x g supernatant fluid of rat liver homogenate, cholest-5-ene-3/3,12a-diol could be isolated only in very small amounts indicating that cholest-5-ene-3j3,7a-diol is the predominant intermediate in the conversion of cholesterol into cholest-5-ene-3j3,7a,l2a-triol. I n the presence of 20,000 x g supernatant fluid tritium-labeled cholest-5-ene-3/3,12c-diol was converted into 7cc,l2a-dihydroxycholest-4-en-3-one mainly by means of the intermediary formation of cholest-5-ene-3~,7a,l2a-triol. I n the presence of microsomal fraction fortified with NADP, cholest-5-ene-3j3,12 a-diol was converted into 12a-hydroxycholest-4-en-3-one. Tritium-labeled 12 a-hydroxycholest-4-en-3-one was converted in the presence of 100,000 x g supernatant fluid into 5/3-cholestane-3a,l2a-diol by means of the intermediary formation of 12a-hydroxy-5/3-cholestan-3-one. When 12a-hydroxycholest-4-en-3-0ne was incubated with the 20,000 x g supernatant fluid, small amounts of 5~-cholestane-3a,7ac,12a-triol were formed, No 7a-hydroxylated metabolites could be identified when tritium-labeled 12a-hydroxy-5/3-cholestan-3-one and 5,4-cholestane-3cc, 12a-diol were incubated with the 20,000 x g supernatant fluid.After administration of tritium-labeled 12 a-hydroxycholest-4-en-3-one to bile fistula rabbits 2-301, of the bile acids formed consisted of cholic acid. After administration of tritium-labeled 12a-hydroxy-5~-cholestan-3-one and 5/3-cholestane-3a,12a-diol no significant amounts of cholic acid could be identified.It is concluded that the initial reaction in the conversion of cholesterol into cholic acid is predominantly a 7 a-hydroxylation.