The effects of yam(Dioscorea) on lowering cholesterol level and its mechanism were investigated. The concentrations of plasma and liver lipids, and the excretions of fecal neutral sterol and bile acid were measured in male Sprague-Dawley rats. Five Groups of 8 rats were fed hypercholesterolemic diet(1% cholesterol, 10% lard ; control), hypercholesterolemic diet plus 15% or 30% dried yam powder prepared by either hot-air(15HY, 30HY) or freeze dry(15FY, 30FY) for 4wk. Plasma total lipid, total cholesterol and cholesterol level was also significantly lower(28%, p<0.05), buy HMG-CoA reductase activity was higher in 30FY(230%, p<0.05) than in control. Although no significant differences in fecal neutral sterols were observed among groups, the yam-fed rats apparently had less bacterial degradation of cholesterol as indicated by a significantly greater of fecal cholesterol to coprostanol than in controls. Total fecal bile acids were significantly greater in rats fed yam(15HY : 5 folds, 15FY ; 12,30HY ; 12, 20FY ; 22) than in controls. The ratio of secondary to primary bile acids was almost 8 times lower in 30FY than in control. These data indicate that yam lowers cholesterol both in plasma and in liver through increasing fecal bile acid excretion as well as HMG-CoA reductase activity. Freeze-dried yam, which possesses viscosity, was more effective in cholesterol-lowering action than hot-air dried one.