Sheep were fed diets containing 7.5% added stearic acid, oleic acid, or tristearin for 21 days. In addition, 50 microCi/kg cerium-141 was included for the last 10 days on experimental diets as an unabsorbed reference substance. In the rumen dietary triglycerides were approximately 50% hydrolyzed, and hydrogenation resulted in saturation of the free fatty acid fraction. Some net synthesis of phospholipids, presumably microbial phospholipids, occurred in the rumen. In the intestine immediately distal to the pylorus, extensive secretion of bile acids, cholesterol, phospholipids, triglycerides, free fatty acids, and lipase occurred. This resulted in doubling of fatty acid fluxes through the duodenum. These endogenous secretions were reabsorbed rapidly however, with the major site of lipid and bile acid absorption in the region .6 to 4 m distal to the pylorus. Additional but less absorption occurred in the more distal segments of the small intestine. Overall absorption of stearic acid, oleic acid, and tristearin supplements was in the range 60 to 70%, and no differences were apparent between fats. Unsaturated fatty acids were over 90% absorbed as compared with 55 to 65% for saturated fatty acids. No significant effect of any of the supplements was observed on ruminal total volatile fatty acids, ratios of volatile fatty acids, or on overall cellulose or caloric digestion.