A method for the surgical preparation of a bile fistula in the sculpin Myoxocephalus quadricornis is presented. This model was used in demonstrating the conversion of 14C‐cholesterol into bile acids. The main acid metabolite was cholic acid and the presence of dihydroxy bile acids was also demonstrated. The amount of labelled compounds which was recovered in the bile was small both in case of parenteral administration to fistulated sculpins and after peroral administration to intact animals. This may be attributable to slow metabolism at the low ambient temperature these animals require to survive.