Structured lipid (SL) prepared from 75 parts coconut oil and 25 parts corn oil (75:25 CNO: MZO) was tested for its efficiency in rehabilitating 95 Tondo [Philippines] preschool children who were first to third degree malnourished (levels 3 to 9 of malnutritions). The feeding program consisted of one full midday meal and an afternoon snack daily except Sundays for 16 wk. The diets were similar in every respect except for the fat. In the SL diet, approximately 60 percent of the fat came from 75:25 CNO:MZO, while in the SBO diet the fat source was soybean oil. The children were allocated to the two diets by random numbers: 47 children received the SL diet, 48 the SBO diet. The children were weighed every 2 wk and examined by a pediatrician for general health condition once a week. The ages and initial weights and degrees of malnutrition of the two groups were similar. Results showed that the SL diet with 75:25 CNO:MZO produced significantly faster weight gains and improvement in nutritional level than the SBO diet