The chemical composition and hypocholoesterolaemic effect of Nostoc commune were studied. Proximate analysis data, composition of dietary fiber and oxalic acid-ammonium oxalate soluble substance of Nostoc commune were presented. Thirty rats were fed with the one of the following diet for three weeks: The control diet contained 0.75% cholesterol, 0.25% sodium cholate and 5% cellulose powder, CF was cholesterol free, PNC, ONC and RNC diet contained 7.2% powder, 2.2% extracts and 5% residue of Nostoc commune respectively. The lipid components of serum were assayed. The concentration of the total cholesterol was significantly lower in PNC, ONC than the control. The concentration of the total cholesterol was significantly lower in PNC, ONC than the control. The concentration of HDL-choloesterol was significantly higher in PNC than the control. The concentration of LDL, VLDL and chylomicron were comparatively lower in CF and PNC. The concentration of seum triglyceride and phospholipid was lower in PNC group than in the other group.