Used in the pharmaceutical industry as a key component in the formulation of liposomes and lipid nanoparticles, especially for drug delivery systems including mRNA vaccines. Acts as a stabilizing agent in membranes, enhancing the integrity and fluidity of lipid bilayers. Employed in cell culture media to support the growth of certain mammalian cells. Also utilized in the synthesis of steroid hormones, bile acids, and vitamin D derivatives. Commonly found in research settings to study membrane biology and lipid metabolism.

In the cosmetics and personal care industry, cholesterol helps reinforce the skin's natural barrier, maintains moisture, and reduces transepidermal water loss. It is commonly incorporated into creams, lotions, and products for dry or sensitive skin.