The current study was intended to investigate the cholesterol-lowering potential of the two Lactobacillus rhamnosus probiotic strains, LR 5957 and LR 5897, isolated from ‘dahi’. Cholesterol-lowering ability of both strains was determined in in vitro conditions. For in vivo investigations, the Wistar rats were randomly assigned into five groups and treated with different diets: standard diet (SD), high-cholesterol diet (HCD), HCD with Milk, HCD with LR 5957–fermented milk, and HCD with LR 5897–fermented milk. After 3 months of feeding, different parameters of hypercholesterolemia were measured in blood, feces, liver, and kidney. Both the strains, LR 5957 and LR 5897, showed the ability to grow in the presence of cholesterol and eliminate the cholesterol under in vitro conditions. In vivo results indicate that consumption of probiotic-fermented milk has significantly reduced the HCD-induced body weight, hyperlipidemia, and hepatic lipids (total cholesterol and triacylglycerol). Further, increased cholesterol excretion in feces was also observed in probiotic-fed groups. The studied fermented milk also helped to maintain healthy liver and kidney by increasing the antioxidant activities and decreasing the lipid peroxidation. Consumption of probiotic-fermented milk also found to decrease the mRNA expression of the inflammatory markers TNF-α and IL-6 in the liver. Overall, our results indicate that the L. rhamnosus strains, LR 5957 and LR 5897, are two potential probiotic strains that can ameliorate the diet-induced hypercholesterolemia.