Blubber, a specialized hyperdermic adipose tissue found in marine mammals, has been identified as a useful tissue for the assessment of steroid hormone homeostasis in cetaceans. However, blubber cortisol measurements are not quantitatively predictive of circulating cortisol concentrations in bottlenose dolphins. In other mammals, adipose tissue metabolizes steroid hormones. Thus, it is proposed that the disagreement between blubber and blood cortisol in bottlenose dolphins could be due in part to metabolism of corticosteroids in blubber. The purpose of this study is to characterize the ability of blubber to interconvert cortisol and cortisone using an in vitro design. Results demonstrate that bottlenose dolphin blubber microsomes interconvert cortisol and cortisone, an effect that is abated by denaturing the microsomes, indicating this is an enzymatic process. These findings lead to the conclusion that blubber is likely a site of active steroid metabolism, which should be considered in future studies utilizing blubber as a matrix for endocrine assessment.