The effect of feeding blended and interesterified oils containing palm oil (PO) and rice bran oil (RBO) on serum and liver lipids was evaluated in rats. The PO and RBO were blended to contain saturated, monounsaturated and polyunsaturated fatty acids in the proportion of 1:1.5:1. The blended oil was subjected to transesterification reaction using immobilized lipase, lipozyme IM-RM. Rats were fed a diet containing blended or interesterified oils for 8 weeks. Rats fed PO showed significantly higher levels of cholesterol in serum and liver as compared to those given RBO, blended oil of PO with RBO or interesterified oil. Rats fed blended oils showed a significant decrease in serum cholesterol by 51% compared to rats fed PO. Feeding interesterified oil to rats resulted in decrease in serum cholesterol by 56% compared to rats fed PO, which was 10% lower compared to that observed in rats given blended oil. The present study indicated that a combination of PO with RBO can significantly lower serum lipids in rats as compared to those given diet containing PO alone.