There are still a number of unresolved issued in our understanding mechanism of lipid digestion and absorption. The process is both multistage and mutiphase requiring the application of colloid science to obtain a full description. In this paper we describe recent work within our laboratory on the colloidal aspects of each stage of lipid digestion and absorption. Stage 1 describes emulsification of dietary lipid upon ingestion of a meal and within the stomach. The influence of viscosity enhancement by the inclusion of soluble non-starch polysaccharides within the meal is described and the effect on droplet size distribution. Stage 2 encompasses the process of lipid digestion within the duodenum and an in vitro model system is described to determine the role of endogenous surfactants in emulsion stability and lipase activity. Finally, within stage 3, the formation and diffusion of a mixed micellar phase is described. This phase acts as a vehicle for solubilisation of lipolysis products to allow diffusion through the gut lumen to the point of absorption.