The effects of supplementing laying hen diets with 0, 5, or 10% fat in the presence of 3.0, 3.6, or 4.2% dietary calcium was investigated using laying hens over a 7-week period. There was no significant effect of the fat or calcium treatments on laying hen performance as judged by feed intake, weight gain, egg production, egg weight, and egg shell deformation. Although there was an increase in fat retention with an increase in dietary fat level (P less than .01), a larger proportion (P less than .05) of unabsorbed fat was present as soap in the excreta of birds on these diets relative to those fed the control diet. There was evidence to indicate that most of the soap observed in the excreta of laying hens was formed in postabsorptive areas of the gut, thereby explaining why the detrimental effects of soap formation were not seen in the laying hen. Increasing the dietary calcium level reduced both percentage calcium (P less than .01) and magnesium (P less than .05) retention. There were no significant effects of the treatments on nitrogen and phosphorus retention. There were also no significant effects of the treatments on shell ash, shell calcium, magnesium, and phosphorus content. Increasing the dietary calcium level increased bone ash (P less than .05) while reducing bone magnesium content (P less than .05). There were no significant effects of the fat and calcium treatments on bone calcium and phosphorus content.