The invention relates to a feed additive for decreasing the absorption of cholesterol and application thereof, and belongs to the field of feed. The feed additive is prepared from the following components in parts by weight: 5 to 20 parts of vegetable beta-sitosterol, 10 to 50 parts of stigmasterol, 380 to 420 parts of defatted rice bran and 530 to 585 parts of wheat bran. The feed additive has the better effect of decreasing the absorption of the cholesterol. The feed additive is applied to the preparation of pig feed or poultry feed; the control of the content of the cholesterol in the meat of a pig or poultry is facilitated. The feed additive is used for feeding the pig or the poultry; the absorption of the cholesterol in intestinal tracts of the pig or the poultry can be reduced; the accumulation of the cholesterol in the meat or an egg is reduced.