The two main functions of bile are to neutralize stomach acids and to emulsify fats. Bile neutralizes the hydrochloric acid from the stomach, providing an alkaline environment necessary for enzymes in the small intestine to work effectively. Bile also emulsifies fats by breaking large fat droplets into smaller ones, increasing their surface area so that enzymes like lipase can more efficiently break down the fats into glycerol and fatty acids for absorption.