Abstract: Blondo, a by-product of virgin coconut oil processing, contains a large quantity protein and lactic acid bacteria. The objective of this study was to compare the substituting of Commercial Diet (CD) by Blondo on the performance productions, egg weight as well as yolk cholesterol in laying hens. Completely randomized design was used to analyze the data, one hundred and sixty Isa Brown (19 weeks old) laying hens were observed in this study. Groups were randomly assigned to 4 treatments with 5 replications. Treatment diets were prepared by substituting 0, 7, 14 and 21% with Blondo to commercial layer feed. The results showed that the use of Blondo in CD was significantly (P<0.01) improved feed intake, protein intake and yolk cholesterol as well as to hen day, egg mass, feed conversion ratio and egg weight. The diet containing 7% Blondo resulted the best performance in which hen day production 88.92±1.15%, egg mass production 44.47±1.73 g/d, egg weight, 49.71±0.95 g, feed conversion ratio 2.20±0.07 and provided income over feed cost IDR 12, 822±290/head/period, respectively. The higher the blondo use in CD, the lower the yolk cholesterol. The use blondo up to 21% in a commercial diet decreased yolk cholesterol content until 34.50±7.33 mg/dl. We concluded that Blondo could be used as an alternative ingredient for commercial diet of laying hens.