The liver produces bile, a digestive fluid essential for breaking down fats in the small intestine. Bile contains bile salts, cholesterol, bilirubin, and electrolytes. It aids in the emulsification of fats, making them easier for lipases to digest. Bile also helps in the absorption of fat-soluble vitamins (A, D, E, and K) and eliminates waste products from the bloodstream, such as bilirubin, produced from the breakdown of red blood cells. Thus, bile plays a crucial role in both the digestive process and detoxification in the body.