This review is focused upon the oxysterol model for the regulation of cholesterol biosynthesis. This model postulates that oxygenated derivatives of cholesterol or lanosterol are produced in cells as signal molecules which bind to an oxysterol binding protein (receptor) and repress cholesterogenic gene expression. Progress made in identifying the major elements of the oxysterol model, i.e. a candidate oxysterol receptor protein and candidate endogenous oxysterol regulators is summarized, and critical, unresolved issues in the oxysterol hypothesis are presented.