ObjectiveTo develop guidelines for screening and case‐finding of children with raised serum cholesterol levels and to determine realistic cut‐points for intervention and management.DesignThe percentiles for serum cholesterol selected by authoritative US bodies for intervention were applied to the available Australian data on serum cholesterol levels in children.ConclusionOn the basis of this information we recommend a serum cholesterol level of 4.5 mmol/L as the target ceiling for Australian children; 5.5 mmol/L as the cut‐point for active dietary intervention; and 6.0 mmol/L as the cut‐point for specialist referral. A dual approach to intervention is recommended: population intervention through health promotion; and at a family level case‐finding with individual intervention targeted to children with a serum cholesterol level greater than 5.5 mmol/L, with emphasis on dietary change in both cases.