Objective In ancient India ghee was used as vehicle in many Ayurveda preparations. Oral consumption of ghee is like offering finest of fuels into the fires of digestion. Ghee makes all body organs soft and builds up internal juices, which are diminished by aging. But science says that increase in intake of saturated fats and trans fats raises the level of cholesterol. There is a general consideration in public that consumption of "ghee "results in rise of serum cholesterol levels when compared to edible oil. The main objective of our study is to establish facts in this general consideration of public. Method We fed two groups of rats one with "oil" and another with "ghee"mixed in deoiled rice bran. The third group of rats is fed with deoiled rice bran and taken as control. We noted initial serum cholesterol, HDL, LDL, triglycerides levels. After 40days of feeding again serum cholesterol, HDL, LDL and triglyceride levels are noted. Results Consumption of "ghee" did not result in much rise in LDL and other serum cholesterol level when compared to "peanut oil". In contrast, slightly decrease in LDL levels is noted in rats consuming ghee. Conclusion The results obtained reveal that ghee is not as harmful as the people feel. Use of ghee as cooking oil probably decreases the probability of getting cardiovascular disease as it causes increase in HDL cholesterol levels. Results also indicate that ghee is relatively safer when compared to peanut oil.