Milk fat represents a significant source of nutrition and energy for humans stimulating extensive investigations dominating recent health concerns even at micro levels by bio-scientists. Despite its longstanding association with health, the current researches are directed at number of beneficial components like bioactive lipids and fat soluble vitamins. Bioactive lipids in milk include triglycerides, diglycerides, monoglycerides associated with beneficial fatty acids like short chain, medium chain, conjugated linoleic acid (CLA), and polyunsaturated fatty acids. These can prove as potential diagnostic tools for reckoning chronic diseases like cancers, diabetes, inflammation, and CVD (Cardiovascular disease). The minor lipid components like phospholipids, sterols, ether lipids also carry biological and health promoting activities. Butyric acid plays important role in controlling cell growth, differentiation and preventing tumor genesis in colon cells. Fat-soluble vitamins (A and E) in milk fat are involved in antioxidant and tumor suppressing activities. CLA has been shown to play important role in inhibition of carcinogenesis and atherosclerosis as well as immune stimulation in different studies on animals. Furthermore, phospholipids like sphingolipids and their active metabolites, ceramides and sphingosines had exhibited effective antibacterial properties, anti carcinogenic and immune stimulation properties. The current information on bioactive lipid components in milk lipids in promoting health and preventing disease has been summarized in the paper.