The hypolipidemic functions of Auricularia polytricha was investigated in this research. The results showed that Auricularia polytricha could decrease the cholesterol level significantly in vivo. The protein component was then extracted and its hypolipidemic function in vivo towards rats was studied. It was found that the protein extract of Auricularia polytricha could decrease the levels of cholesterol, triglycerides and low-density lipoprotein cholesterol in blood with the ratio of 28.4%, 22.95% and 42.14%, respectively. The protein extract also could relief the degree of fat liver. Auricularia polytricha protein extract could be applied in preparation of health supplement