Olestra is a sucrose polyester, the first fat substitute that replaces many of the uses of dietary fat such as in dough conditioning, in sprays, in filling ingredients, in flavors, as well as in frying. However, it is not absorbed in the human digestive system, and therefore, it does not provide any nutrition or energy. It has taste and cooking properties similar to the conventional fats and oils. FDA approved the use of olestra only in limited and specific foods with a listing of fat soluble vitamins (vitamins A, D, E, and K) in the ingredient statement of olestra-containing foods followed by an asterisk that is linked to the statement "Dietarily insignificant." This article reviews the physiological, nutritional, health, and environmental effects of the human consumption of olestra.