Bile acids are central signals in enterohepatic communication and they also integrate microbiotaderived signals into enterohepatic signaling. The tissue distribution and signaling pathways activated by bile acids through natural receptors, farnesoid X receptor and G protein-coupled bile acid receptor 1 (GPBAR1, also known as TGR5), have led to greater understanding of mechanisms and potential therapeutic agents. Bile acid diarrhea is most commonly encountered in ileal resection or disease, in idiopathic disorders (with presentation similar to functional diarrhea or irritable bowel syndrome with diarrhea), and in association with malabsorption such as chronic pancreatitis or celiac disease. Diagnosis of bile acid diarrhea is based on 75 SeHCAT retention, or 48 hour fecal bile acid excretion, or serum 7αC4; the latter being a marker of hepatic bile acid synthesis. Bile acid diarrhea tends to be associated with higher BMI, increased stool weight and stool fat, and acceleration of colonic transit. Biochemical markers of increased bile acid synthesis or excretion are available through reference laboratories. Current treatment of bile acid diarrhea is based on bile acid sequestrants, and, in the future, it is anticipated that FXR receptor agonists may also be effective. The optimal conditions for an empiric trial with bile acid sequestrants as a diagnostic test are still unclear. However, such therapeutic trials are widely used in clinical practice. Some national guidelines recommend definitive diagnosis of bile acid diarrhea over empirical trial.