The liver is located at the beginning of the small intestine.

The liver creates bile. This is a liquid that breaks up large fat particles (from the stomach) into smaller pieces. This is done similar to the way detergent breaks up grease on dishes.

The small sac at the base (shown in back) of the liver is the gall bladder. The gall bladder stores the bile, then releases it into the small intestines, where the fat particles are broken down and absorbed by the body.