Using the experimental model of the everted sac prepared from rat jejuna, kinetic studies on [14C]oleic acid uptake from bile salt micelles were conducted in the presence and absence of phosphatidylcholine. The concentration of oleic acid was varied between 0.625 and 5 mM. At every level of fatty acid concentration studied the addition of 2 mM phosphatidylcholine produced a significant inhibition of fatty acid uptake. It was further noted that the intact phospholipid molecule was required for this effect as lysophosphatidylcholine produced little, if any, inhibition of [14C]oleic acid uptake. The effect of varying the concentration of phosphatidylcholine on fatty acid uptake was also studied. The degree of inhibition was noted to be correlated grossly with media concentrations of this phospholipid although the decrease of fatty acid uptake was not strictly proportional to concentration of this material in the medium. Studies were also performed analyzing in vitro absorption of [14C]oleic acid and [3H]cholesterol simultaneously from mixed micelles composed of sodium taurocholate, oleic acid, monoolein and cholesterol. Control medium contained no phospholipid while experimental medium contained either diester or diether phosphatidylcholine, 2 mM. Both types of phosphatidylcholine caused significant inhibition of fatty acid and cholesterol uptake. In vivo absorption studies were also performed using the isolated jejunal segment technique. A mixed micellar solution containing [3H]cholesterol and [14C]oleic acid was used as the test dose. Phospholipid in the test dose for controls was supplied as lysophosphatidylcholine and for experimentals it was in the form of diether phosphatidylcholine. Significantly less radioactively labeled cholesterol and fatty acid was absorbed by experimentals as compared to controls over a 10-min period. It is concluded that the intact molecule of phosphatidylcholine inhibits intestinal uptake of cholesterol and fatty acid from mixed micellar solutions under both in vitro and in vivo conditions.