This study was conducted to assess the effect of feeding corn steep liquor (CSL) on in vivo digestibility, ruminal pH, ammonia and hydrolytic enzyme activities, blood metabolites, feed intake (FI) and growth performance in fattening lambs. The CSL is a by-product of wet milling process of maize starch industry. The crude protein (CP), rumen-degradable protein (RDP), lactic acid and metabolisable energy contents of this by-product were 420, 324, 200 g/kg dry matter (DM) and 12.6 MJ/kg DM respectively. Twenty-seven male Moghani lambs were assigned randomly into three groups of nine lambs each in a completely randomised design. Three iso-energetic and iso-nitrogenous diets containing different levels (0, 50 or 100 g/kg dry matter) of CSL were offered ad libitum three times a day. Forage to concentrate ratio of the diets was 30:70. With inclusion of CSL in diet, the contents of canola meal, fish meal, wheat bran, corn grain and sugar beet pulp were decreased. The contents of DM, ash-free neutral detergent fibre (NDFom), ether extract, starch, Ca and S were numerically lower, but soluble protein, RDP and non-fibre carbohydrates were greater in the diets containing CSL in comparison with the control diet. The lambs fed with the diets containing CSL had lower [linear (L), p < 0.06] digestibility coefficients of DM and NDFom as compared to those fed with the diet free of CSL. Ruminal ammonia-N concentration increased (L, p < 0.05), but pH decreased (L, p < 0.05) with raising CSL level in diet. Carboxymethyl cellulase and filter paper-degrading activities decreased (L, p < 0.05), while proteases activity increased (L, p < 0.05) as dietary rates of CSL increased. Microcrystalline cellulase and ɑ-amylase activities were similar among the treatments. Within blood metabolites, only urea-N concentration increased (L, p < 0.05) in the lambs receiving CSL as compared to those fed with diet without CSL. Dietary inclusion of CSL resulted in linear decreases (L, p < 0.05) in the intakes of DM, organic matter, CP, NDFom and ash-free acid detergent fibre, and average daily gain. However, the feed conversion ratio was similar among the experimental animals. Overall, feeding CSL up to 100 g/kg diet DM in lamb resulted in reductions of rumen fibrolytic microbial enzyme activities, in vivo digestibility, FI and growth performance, but rumen proteases activity increased.