The majority of fuel ethanol in the United States is produced by using the dry-grind corn ethanol process. The corn oil that is contained in the coproduct, distillers’ dried grains with solubles (DDGS), can be recovered for use as a biodiesel feedstock. Oil removal will also improve the feed quality of DDGS. The most economical way to remove oil is considered to be at the centrifugation step for separating thin stillage (liquid) from coarse solids after distilling the ethanol. The more oil there is in the liquid, the more it can be recovered by centrifugation. Therefore, we studied the effects of corn preparation and grinding methods on oil distribution between liquid and solid phases. Grinding the corn to three different particle sizes, flaking, flaking and grinding, and flaking and extruding were used to break up the corn kernel before fermentation, and their effects on oil distribution between the liquid and solid phases were examined by simulating an industrial decanter centrifuge. Total oil contents were measured in the liquid and solids after centrifugation. Dry matter yield and oil partitioning in the thin stillage were highly positively correlated. Flaking slightly reduced bound fat. The flaked and then extruded corn meal released the highest amount of free oil, about 25% compared to 7% for the average of the other treatments. The freed oil from flaking, however, became nonextractable after the flaked corn was ground. Fine grinding alone had little effect on oil partitioning.