Fatty acids are important intermediate molecules in lipid metabolism. During lipolysis of intracellular lipid droplets or plasma triacylglycerol-rich lipoproteins, fatty acids are generated and may transiently accumulate. We therefore studied the distribution of both fatty acid and free cholesterol between the core and surface of phosphatidylcholine-triolein emulsions at pH 7.4. Nine emulsion systems containing 0.8 to 6.6% cholesterol and 0.16 to 1.02% oleic acid were formed, and core and surface phases were isolated. Phospholipid distributes only to the surface phase. The distribution coefficient of cholesterol surface to core was 23.9 +/- 3.6 S.D., i.e., there was approx. 24-times more cholesterol per unit mass in the surface than in the core phase. This distribution was unchanged by the presence of different quantities of fatty acid in the emulsion particles. The apparent distribution coefficient of fatty acid in surface to core was about 10 at low cholesterol contents and fell to about 7 at high cholesterol contents. However, when the apparent distribution coefficient of fatty acid was related only to the phospholipid component of the surface, the apparent distribution coefficient was constant at about 12.3 +/- 1.1 S.D. Since the fatty acid in the surface phase is about half ionized the true distribution coefficient of unionized fatty acids is about 6.2. The results indicate that fatty acids partition into the phospholipid domains of the surface and not into cholesterol domains and the distribution of fatty acids into surface phospholipid domain is not affected by cholesterol content.