1. 1. The metabolism of cholest-4-en-3-one-7α-ol was studied by incubating the tritium-labelled substance with the different cell fractions of rat-liver. After incubation, a lipid extract was made, the constituents of which were crudely separated on small alumina columns. The metabolites were further separated and identified chemically and by radioactive means, by thin-layer chromatography on fluorescent plates. 2. 2. In mitochondria, a more-polar ultraviolet-absorbing product, suggested to be cholest-4-en-3-one-7α,26-diol, was formed. The reaction was not stimulated by NADPH or NADH. Supernatant factor (boiled supernatant fraction) possibly stimulated the reaction. Disruption of the mitochondria either sonically or osmotically did not destroy the enzymic activity, which was found to lie in the debris sedimented after disruption. An acetone powder was found to be inactive. 3. 3. No metabolism of cholest-4-en-3-one-7α-ol occurred in the microsomal fraction. However, on addition of either active supernatant or supernatant factor, the polar ultraviolet-absorbing material was formed. Thus, a thermostable co-factor found in the supernatant fraction gives microsomes the power to hydroxylate. This cofactor was inactivated by treatment with alkali at 100°. 4. 4. The supernatant fraction was partially purified by ammonium sulphate precipitation. Cholest-4-en-3-one-7α-ol was reduced to cholest-4-en-3α,7α-diol and 3α,7α-dihydroxycoprostane. The production of both substances was found to depend on substrate concentration and NADPH concentration. Cholest-4-en-3-one inhibited the production of 3α,7α-dihydroxycoprostane only. Cholest-4-en-3α,7α-diol was found to be not readily converted to 3α,7α-dihydroxycoprostane. The enzyme system was not specific, and readily reduced many α,β-unsaturated ketones. Coprostan-3-one-7α-ol was converted readily to 3α,7α-dihydroxycoprostane, with either NADPH or NADH as co-factor, thus suggesting two possible routes for the formation of 3α,7α-dihydroxycoprostane by reduction of cholest-4-en-3-one-7α-ol. Biochim. Biophys. Acta, 116 (1966) 362–378