NOVELTY - Separating sterols from lanoline by saponification involves: saponifying lanolin by lower alcohol; forming calcium soap, separating, washing, combining and concentrating filtrates, acidifying filtered product, refining, treating concentrated solution with lower acid to form white solid, filtering water and oil phase, concentrating oil phase, drying oil phase, dissolving oil phase in petroleum ether, separating on silica gel column to obtain fatty alcohol, sterol and cholesterol, and recrystallizing and purifying sterol and cholesterol.    USE - For separating and extracting phytosterols from saponifiable matter of lanoline (claimed).    ADVANTAGE - The method for separating and extracting phytosterols from saponifiable matter of lanoline by using alcohol produces product having high purity in high yield, such as produces cholesterol having purity of higher than 93%, at yield of (more than 78%, preferably more than 80%). The cholesterol product obtained has good crystalline form, good color, and does not have peculiar smell, thus process is suitable in medicine production, and process flow is simple and easy to operate. The whole operation only needs 24 hours. Further, solvent in process flow and chromatography medium can be recycled, thus process does not produce waste, so that process cost is low, is convenient for amplification, and product can be obtained on industrial scale. The process thus solves problem of such prior art methods in which sodium soap of saponification reaction is emulsified in reaction system, and its subsequent separation is difficult.    DETAILED DESCRIPTION - Separating and extracting sterols from saponifiable matter of lanoline by using alcohol involves: saponification reaction involving using lower alcohol as solvent, weighing alkali, controlling temperature at 5-60 degrees C, adding lanolin in melting state, optionally adding small amount of water, raising temperature to 78-85 degrees C, maintaining normal pressure and stirring and reacting for 3-8 hours to obtain brown mixture; saponification compound decomposition involving cooling reaction solution to 4-55 degrees C, adjusting pH to 8-9, adding calcium salt, stirring to obtain calcium soap, centrifuging or filtering solid-liquid separation, at same time, using lower alcohol for washing filter residue 2-3 times, then filtering and collecting filtrates, combining filtrates and concentrating, treating filtered product at 50-60 degrees C by inorganic acid acidification to obtain crude product, refining crude acid to obtain refined acid, removing residual calcium ion, taking viscous alcohol filtrate concentrated solution in lower hydrocarbon, ethyl acetate, methanol or diethyl ether to dissolve, adding lower acid and stirring to obtain white solid, filtering water and oil phase till water phase has neutral pH, collecting oil phase and concentrating, rotationally evaporating to obtain dry sample, dissolving concentrated oil phase in petroleum ether, adding small amount of sample to silica gel column, firstly obtaining saponified lanolin with 100% petroleum ether, then using petroleum ether and ethyl acetate for elution by adjusting ratio of petroleum ether and ethyl acetate to carry out gradient elution, where in mobile phase Volume ratio of petroleum ether and ethyl acetate is 30:1 to obtain fatty alcohol component, then changing volume ratio of petroleum ether to ethyl acetate in mobile phase to 20:1 to obtain wool sterol component, then changing volume ratio of petroleum ether to ethyl acetate in mobile phase to 100:1 to obtain cholesterol component, using lower alcohol for recrystallizing wool sterol component and cholesterol component, and purifying to obtain final product.