Abstract: Milk fat contains a number of components having functional properties. Milk fat has fatty acids and membrane lipids that may exert antimicrobial effects either directly or upon digestion. Both sphingolipids and their active metabolites, ceramides and sphingosines, were determined as effective bactericidal agents on pathogens like Listeria monocytogenes. In addition, studies with experimental animals have shown that feeding sphingolipids inhibits colon carcinogenesis, reduces serum LDL cholesterol and regulates immune system. It has been long known that the fat-soluble vitamins (A and E) are important in human nutrition. Provitamin A (Beta-carotene) has desirable properties in addition to its role of forming vitamin A, such as being an antioxidant and possibly causing tumour suppression. Butyric acid, a short chain fatty acid and a natural component of the animal metabolism, plays role in cell growth control, cell differentiation and inhibition of colon cancer. In recent years conjugated linoleic acid (CLA), a fatty acid found in milk fat, has been extensively reviewed. A wide range of health benefits of CLA has been shown in animal models including inhibition of carcinogenesis and atherosclerosis as well as immune stimulation. Furthermore, recent studies have also showed that CLA prevents the development of diabetes in the obese rats.