Cholesterol synthesis occurs in the cytosol and the endoplasmic reticulum of cells. The process begins with the conversion of acetyl-CoA to HMG-CoA, followed by its reduction to mevalonate by HMG-CoA reductase. Mevalonate is then converted to isoprenoid units, which polymerize to form squalene. Squalene undergoes cyclization and multiple steps to form cholesterol.