To lose fat from hips Diet and exercise both plays an important role. Walking or Jogging is the best way to reduce hips and your overall body fat an especially lower body fat which includes hips, waist and the butt. You can also do cycling. cycling is one of the best and the exercise to reduce hips. Squats can also help. And also your diet plays an important role.Your diet should contain fruits, vegetables, meat/fish/poultry, dairy, bread/rice/pasta, and fats. Those are the basic food groups, and you need to make sure that you have each of these food groups in your diet. To lose fat, you should have an equal amount of lean proteins and complex carbohydrates (whole grains). Make sure that you eat fruits and vegetables on a daily basis. These are high in fiber and will aid your fat loss.