25-Hydroxycholesterol stimulated acyl-CoA:cholesterol acyltransferase (ACAT) activity in rat liver microsomes in vitro with half-maximal stimulation at 16.8 microM oxysterol and a maximal activity that was three times that in its absence. The current study was conducted to determine the effect of 25-hydroxycholesterol on rates and extent of intervesicular cholesterol transfers within microsomes and to determine whether this activation of ACAT could be accounted for on the basis of increased cholesterol availability for the enzyme. Cholesterol transfer kinetics were assessed in systems that either enriched or depleted microsomal cholesterol. Incubation of microsomes at 37 degrees C with phosphatidylcholine:cholesterol liposomes or purified plasma membranes resulted in enrichment of microsomal cholesterol. Incubation of microsomes with just phosphatidylcholine liposomes resulted in depletion of cholesterol. The extent of cholesterol enrichment or depletion depended on incubation time and the initial concentration of cholesterol in donor and acceptor vesicles. The rate and extent of cholesterol transfer from liposomes to microsomes were slightly increased when 25-hydroxycholesterol was present during the transfer process. Irrespective of the treatment, 25-hydroxycholesterol continued to stimulate the ACAT activity of the treated microsomes. Microsomes that were enriched or depleted of cholesterol in the absence of 25-hydroxycholesterol yielded as much enzyme activities when assayed in the presence of 25-hydroxycholesterol as with the systems that contained 25-hydroxycholesterol during both the transfer process and enzyme assays. The results suggest that a major part of the activation of microsomal ACAT by 25-hydroxycholesterol is not ascribable to increased substrate availability for the enzyme.