The hypocholesterolaemic effects of milk fermented by Lactobacillus casei F0822 with bile salt hydrolase activity were investigated in hamsters fed a cholesterol-rich diet. Fermented milk (FM) exhibited dose-dependent hypocholesterolaemic activity. Sterilized and low-dose FM did not significantly affect the lipid profile of hamsters, whereas high-dose FM significantly reduced the levels of serum total cholesterol (TC) and non-high-density lipoprotein cholesterol (non-HDL-C), as well as hepatic TC and esterified cholesterol (EC). The daily faecal total bile acid excretion was significantly negatively correlated with the serum TC and non-HDL-C, as well as with the hepatic TC and EC. High-dose FM significantly enhanced daily faecal total bile acid excretion, which attributed to the hydrolysis of conjugated bile acids and the binding of free bile acids by the cells of strain F0822. These data suggest that the FM may serve as a functional food and has the potential to regulate cholesterol metabolism in humans.