The availability of the sequenced genome ofSaccharomyces cerevisiae(yeast) has culminated in the use of this model eukaryote to study human diseases at a basic level. This article describes the advantages of studying lipid metabolism in this genetically facile organism, including examples of conserved functions and genetic approaches to identifying new components of cholesterol homeostasis. Curr Opin Lipidol 9:85–91. © 1998 Rapid Science Ltd