Fats are digested in the alimentary canal where it is broken down into simple fatty acids and glycerol. Fatty acids and glycerol being insoluble, cannot be absorbed into the blood. They are first turned into small droplets called micelles which move into intestinal mucosa. They are re-formed into very small protein coated fat globules called chylomicrons which are transported into the lacteals in the villi. Lacteals ultimately release the absorbed substances into the blood stream.