The influence of grass hay (GH) inclusion in replacement of corn silage in receiving diets on growth performance and dietary net energy (NE) utilization was evaluated in newly weaned beef steers (n = 162 Charolais-Red Angus cross steers; initial body weight [BW] = 278 ± 13.4 kg). Treatments were (DM basis): 1) 0% GH, 2) 10% GH, or 3) 20% GH inclusion in replacement of corn silage in receiving diets fed to newly weaned beef steers for 56 d. The study was conducted from October to December of 2019. Data were analyzed as randomized complete block design with pen serving as the experimental unit for all analyses. Increasing dietary inclusion of hay had no influence (P ≥ 0.11) on final BW, ADG, gain:feed or observed/expected dietary NEM and NEG, observed/expected dry matter intake (DMI), or observed/expected ADG. GH inclusion increased (linear effect, P = 0.01) DMI. Observed DMI for all treatments was approximately 15% to 17% less than anticipated based upon steer growth performance and tabular NE values. Evaluation of observed/expected ADG was 31% to 37% greater than expected for the steers in the present study. Particles less than 4 mm increased (linear effect, P = 0.01) and greater than 4 mm decreased (linear effect, P = 0.01) as GH replaced corn silage in the receiving diet. As the proportion of particles greater than 4 mm increased, cumulative ADG was decreased. These data indicate that GH should be considered in corn silage-based receiving diets to improve DMI. In high-risk calves, improved DMI could result in a lesser incidence of morbidity, although no morbidity was observed in any steers from the present study.