Consideration of the influence of cholesterol on the physical properties of biological membranes leads to the conclusion that cholesterol increases the thickness of fluid membrane bilayers without appreciably increasing the microviscosity component of membrane fluidity. At sufficiently high cholesterol concentrations, the gel–liquid crystalline phase transition is completely eliminated in phospholipids–cholesterol mixtures and the system has the properties of a two-dimensional liquid over a wide range of temperatures. It is proposed that with the evolution of cholesterol and related sterols in an oxygen-rich atmosphere, the resulting modification of physical constraints on membrane properties made it possible for new evolutionary driving forces to manifest themselves leading to the peculiar properties of plasma membranes of eucaryotic cells.