Currently, there is much interest in the association between cholesterol and Alzheimer's disease. An especially important aspect of this association is the relationship between amyloid beta-peptide (Abeta) and cholesterol that can be described as a reciprocal process. It would appear that cholesterol levels modulate Abeta levels and in turn Abeta acts on cholesterol homeostasis. Herein, we give a brief overview of amyloid beta peptide effects cellular cholesterol trafficking and potential mechanisms of those effects. Alterations of cholesterol homeostasis can have pronounced consequences on cell structure and function and may be both a cause and casualty of Alzheimer's disease.