Ursodeoxycholic acid is a secondary by-product of bile created when bacteria in the intestines metabolize bile. Like bile and other bile by-products, it helps in the digestion of fat. Ursodeoxycholoic acid helps regulate cholesterol in the body by regulating its uptake in the intestines. In its pharmaceutical form, it is used to treat liver cirrhosis, gallstones, and disorders of the bile system during pregnancy.