The invention relates to a process for recovering sterols and/or wax alcohols from a crude tall oil based source material comprising sterols and/or wax alcohols in esterified form and fatty and/or rosin acids and optionally sterols and/or wax alcohols in free form, said method comprising the steps of: a) converting free acids in the source material to corresponding salts, b) removing water if present, c) transesterifying the esterified sterols and/or wax alcohols present in the dry material obtained in step a or step b to liberate sterols and/or wax alcohols, d) evaporative fractionating the transesterified material, and e) isolating sterols and/or wax alcohols from the obtained fraction(s) and/or the residue.