The influence of 0.2% cholic acid in a purified type diet on the utilization of tallow (TLW), lard (LD), hydrogenated soyabean oil (HSBO) or corn oil (CNO) was studied using chicks two to four weeks of age. The fats were added to the diet to replace either 50 or 100% of the metabolizable energy from glucose.The presence of cholic acid significantly improved the apparent absorbability of all fats by an average of 2.1 percent, despite their high absorbability (average 92.7%). This was substantiated by significant increases in the metabolizable energy (M. E.) of most diets as follows: (a) fats substituted isocalorically for 50 percent of TLW diet, +4.4%; LD diet, -1.1%; HSBO diet, +9.8%; CNO, +8.5%; and (b) fats substituted isocalorically for 100 percent of the glucose; TLW diet, +15.8%; LD, diet +2.2%; HSBO diet, +4.9%; CNO diet, +2.5%.The M. E. values for the fats in the diets without cholic acid, and those with cholic acid were 13 to 21%, and 20 to 41%, respectively, higher than reported M. E. values. The extra caloric effect of dietary lipids appeared to be derived from the non-lipid components of the diet.