Aim: The present study was conducted to assess the diagnostic role of pleural fluid cholesterol in categorizing type of pleural effusion. Material and methods: The present prospective observational study was conducted on 51 patients hospitalized to the Department of Pulmonary Medicine, TMMC & RC, TMU, Moradabad, for a period of one and a half years. Patients with definite clinical diagnosis and pleural effusion evidenced by radiological imaging and thoracentesis yields a sufficient good quantity of pleural fluid for examination was included in the study. Pleural fluid cholesterol was investigated and compared according to Light’s criteria.