When Liver secrets Bile juice in Small intestine then the bile juice digests the Fat.

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Fats are present in the form of large globules in the small intestine. The small intestine receives the secretions from the liver and the pancreas. The bile salts (from the liver) break down the large fat globules into smaller globules so that the pancreatic enzyme lipase can easily act on them. This is referred to as emulsification of fats. This process takes place in the small intestine.