The effect of dietary taurine supplementation on plasma and hepatic lipid concentrations were evaluated in rats fed one of the following two cholesterol-free diets for 5 weeks ; a control diet(CD : cholesterol -free and taurine -fee diet) and a taurine supplemented diet(TSD : CD + 1.5% taurine). There were no significant differences in liver weight and cummulative body weight gains between the groups at the end of the experimental period .However, the liver weight to body weight ratio was significantly decreased (p<0.05) by dietary taurine supplementation. Plasma concentrations of total cholesterol , LDL-cholesterol and triglyceride were significantly reduced(37%, 26% and 53% respectively) in rats fed TSD compared to those fed CD. There were no significant differences in plasma free fatty acid and total phospolipid levels between the two groups. Feeding TSD to the rats significantly reduced their hepatic triglyceride concentration(43% decrease , p<0.001) but elevated their hepatic free fatty acid level(77% increase, p<0.001) as compared to the control rats. Liver cholesterol concentration was not significantly influenced by the dietary taurine supplementation. Dietary taurine supplementation significantly reduced the percentage of phosphatidylcholine and phosp-atidylethanolamine, but elevated the prospholipids in the liver homogenates as compared to the values for the CD rats. These results suggest the possible roles of taurine as a hypochlesterolmic and hypotriglyceride agent in rats fed a cholesterol-free diets.