A quantitative estimation of cholesterol in the fore-, mid-, hindbrain and in spinal cord of the differentiating central system of chick has been made. 2. It is found that in the spinal cord area there is always a higher concentration of cholesterol than in the brain region. 3. Concentration of cholesterol increases upto 8 day of incubation and later it gradually decreases. 4. The reason for this differential synthesis of cholesterol has been discussed.