The enzymatic characteristics of mitochondrial 26-hydroxylase system for 5f3-cholestane3a,7a,12a-triol were studied with rat liver mitochondria and the inner membrane-matrix fractions with special reference to its intramitochondrial localization.1. Conditions for the assay of enzymatic activity of the hydroxylase system were established with rat liver mitochondrial preparations and inner membrane-matrix fractions derived by digitonin treatment.2. It was established that rat liver mitochondria, as well as microsomes, possessed the hydroxylase system for 5p-cholestane-3a,7a, 12a-trio1 as an intrinsic constituent. Product analyses revealed that only the mitochondrial hydroxylase system was specifically active for C-26 position. I n contrast, the microsomal system was found to be apparently unspecific on C-26 position but rather more active for other adjacent positions. 3. Among the tested citric acid cycle intermediates and nicotinamide coenzymes, isocitrate and NADPH exerted the most remarkable enhancement of the 26-hydroxylase activity. NADP and NADH were totally inert under the present assay conditions. 4. Partial rupture of the mitochondrial structure by hypotonic or digitonin treatment was essential for the reactivity of 26-hydroxylase system under the present experimental conditions. Accessibility to the intramitochondrial reacting site of the exogenous reactants such as NADPH, isocitrate and 5f3-cholestane-3a,7a, l2a-trio1 in particular was apparently improved by the partial rupture.5. The NADPH-dependent or isocitrate-dependent 26-hydroxylase system was totally insensitive to inhibitors of the respiratory electron transfer such as potassium cyanide, antimycin A, rotenone and amytal. However, it was specifically inhibited by phenyl isocyanide.6. Remarkable sensitivity to carbon monoxide of the 26-hydroxylase system was demonstrated. Apparent Michaelis constant for oxygen and partition coefficient (between carbon monoxide and oxygen) of the 26-hydroxylase system were estimated to be approximately 10-20 pM and 0.1, respectively. Thus, the possible functioning of a "cytochrome P-450"-like entity in intramitochondrial 26-hydroxlase system was proposed.7. The localization of 26-hydroxylase system was assigned to be in the inner membranematrix region, on the basis of the distribution of intramitochondrial marker enzymes during the course of serial solubilization by digitonin.The metabolic system in hepatic cells for conversion of cholesterol to bile acid consists of multiple enzymatic steps. The characterization of each Enzymes. 58 -Cholestanc -3a,7a,12a -trio1 hydroxylasc (EC 1.9%1.-); 5,9-cholestane-3a,7a,l2a, 26-tetrol dehydrogenase (EC 1.1.1. -); 5~-cholestane-3a,7a,l2a-triol-26-a1 dehydrogenase (EC 1.2