Cholesterol granuloma of the middle ear is a very rare disease. No definite conclusion is obtained about the contributory factors of cholesterol granuloma. Some factors are important in its development including: 1)poor drainage of the middle ear and Eustachian tube, 2)repeated bleeding, and 3)obstruction of ventilation. We experienced 1106 cases of middle ear surgery from April 1982 to February 1992 in the Department of Otolaryrgology, Taipei Municipal Ho-Ping Hospital. There were 7 cases of cholesterol granuloma ranging from 24 to 48 years of age. The chief complaint of the patients was hearing impairment or otorrhea. Two cases of perforated tympanic membranes and 5 cases of obstructed or stenotic Eustachian tube were found in pre-operative evaluation. The 7 ears were treated with simple mastoidectomy, radical mastoidectomy or modified radical mastoidectomy. The ears treated with radical mastoidectomy (3 ears) or mofified radical mastoidectomy (1 ear) were completely cured. The primary treatment of cholesterol granuloma of the middle ear has ranged from repeated myringotomies and politzerizations. Sheehy has recommended cortical mastoidectomies after myringotomies have failed to control symptoms. We suggest modified mastoidectomy to be the treatment of choice for cholesterol granuloma of the middle ear.