1. Small intestine is primary site for lipid digestion
2. Bile salts emulsify fat
3. Pancreatic lipase breaks emulsified fats into monoglycerides and free fatty acids
4. Monoglycerides and fatty acids combine to form micelles
5. Monoglycerides and fatty acids are converted back to triglycerides, combined with lecithin, cholesterol, and other lipids, to form chylomicrons