The main function of fats as essential part of the diet is known to provide energy. However, in recent years, fats have been determined to have other important functions, particularly in infancy. While amount and calorie intake/weight gain constituted the focus of previous studies, recent studies concerning the content and properties of fats have showed the impact of fat quality on growth and development as well as long-term health outcome. Due to the fact that palmitic acid content of palm oil used in infant formulas structurally differs from the human milk content of palmitic acid, infant formulas containing palm oil may lead to digestion and absorption problems among infants. These problems may be mainly as follows: a) reduction in fat absorption and calorie intake; b) adverse effects on stool consistency and frequency; c) occurrence of digestive problems such as colic and regurgitation; d) adverse effects on bone mineralization and bone mass due to reduction in calcium absorption.