We describe a method for determining free and total cholesterol in extracts of rat-liver lipids by use of a cholesterol esterase/cholesterol oxidase enzymatic kit (Boehringer Mannheim Corp). The lipids are solubilized (as micelles) directly into the aqueous reagent mixture. Results of the enzymatic method correlate well with those obtained by an acid/ferric chloride assay of digitonin precipitates of the extracts. The enzymatic assay of free and total cholesterol in tissue offers advantages of simplicity over previously used methods.