The invention provides formulations for mediating inflammation and for lowering blood cholesterol. For example, inflammation of the intestine, retina or neural tissues, may be mediated. Further the formulations are effective in decreasing blood cholesterol absorption. The formulations comprise at least one ganglioside, which may be selected from the group consisting of: GD3, GM1, GM2, GM3, GD1b, NANA, and sialic acid. The invention further provides a method of treating or preventing inflammatory diseases by delivery of at least one ganglioside to a subject in need thereof, and a method of reducing blood cholesterol in a subject be delivery of a ganglioside-containing formulation. The formulation of the invention may be used to supplement foods or liquids, and may for example be used in preparation of infant formula or foods.