Cholesterol’s function is to maintain integrity and mechanical stability of the membrane structure. It is also amphipathic (just like the phospholipids.
The phospholipid bilayer is in constant movement, and cholesterol interacts with the fatty acid tails, embedding in between them.
Controls fluidity of the membrane, more cholesterol make it less fluid.
Controls permeability of small molecules, more cholesterol decreases the permeability.
THey can group together to form lipid rafts, which anchor peripheral proteins and hep secure them to the membrane.