The effect of processing on the ability of oat fiber to lower plasma and liver cholesterol concentrations in rats was studied. Male Sprague-Dawley rats were fed diets containing 6% dietary fiber as cellulose, oat bran, high fiber oat flour or one of four processed high fiber oat flours for 3 wk. All diets also contained 1.0% cholesterol and 0.2% cholic acid. At the conclusion plasma and liver concentrations of cholesterol and triglycerides were measured. All of the oat products significantly lowered plasma and liver cholesterol without depressing food intake or weight gain. As little as 4% dietary fiber in a processed oat flour significantly lowered cholesterol concentrations. Detailed fiber analysis of all of the oat fiber products revealed that processing increased the proportion of the total fiber that was soluble. The proportions recovered as total beta-glucans and total neutral sugars also increased, in part because the proportion recovered as Klason lignin decreased in all of the processed oat flours except the one prepared by a high pressure extrusion process.