The invention provides a method for producing high-quality lard or beef tallow with low cholesterol content. The method of the invention uses enzyme hydrolysis, centrifugation separation and homogenization-assisted embedding technique to obtain high-quality lard or beef tallow with low cholesterol levels. The method uses aqueous enzymatic extraction (AEE) techniques to separate lard or beef tallow from the raw material of pork or beef fat, and uses the homogenization-assisted embedding technique to remove cholesterol from the lard and beef tallow products. The method of the invention produces high quality lard with good oxidative stability at a high yield and can meet the Chinese national standard for first grade lard. The lard of the invention needs no further degumming process, eliminating the tedious refinery steps.