Cytotoxic effects of bile acids are related to their chemical structure and concentration The degree of cytotoxicity increases proportionally with the degree of hydrophobicity Thus the lithocholic acid is accepted to be most cystotoxic followed by deoxycholic acid chenodeoxycholic acid cholic acid and ursodeoxycholic acid Bile acids can induce bile duct injury and ductular proliferation fibrosis and cirrhosis Ursodeoxycholic acid which is a tertiary bile acid reduces intestinal bile acid reabsorption induces an increase in the hepatic bile acid excretion stabilizes cells membranes and interferes with the function of cystotoxic T lymphocytes Thus it is found to be beneficial in a variety of cholestatic diseases of adults and children Key words: Cholestasis Bile Acids Ursodeoxycholic Acid